TPI doubts

TPI doubts
Published: 15 August 2003

Concerns by the company auditor flag up renewed speculation over the long term future of this petrochemical and cement producer

The Stock Exchange of Thailand said it has suspended trading in TPI Polene Plc shares after its auditor withheld its opinion on its financial statements for the second quarter to June. The SET said it can be considered that the figures, indicating the financial status and operating results of the company presented in its financial statements, did not reflect the actual position of the company.

TPI Polene PLC said its three months to June net profit was 1.14 bln baht from 258.60 mln a year earlier. EPS was 2.37 baht from 0.51 previously. For the six months to June, net profit was 1.46 bln baht from 285.54 mln the year before, with EPS at 2.97 baht from 0.56.

The Securities and Exchange Commission (SEC) will probably instruct the company to amend its financial statements, the SET said.

In a separate statement, TPI Polene said that the reason the auditor issued a qualified opinion on the company's financial statements for the second quarter is related to the issue of uncertainty about TPI Polene continuing as a going concern. At present, TPI Polene is still exploring a number of options to enable the company to raise sufficient new capital under the requirements of the Master Restructuring Agreement.

In addition, TPI Polene is in a mediation process with its creditor's committee, under the supervision of the Central Bankruptcy Court. TPI Polene is confident that the auditor will be able to give an opinion on its financial statements when it successfully completes its fund-raising exercise.

Meanwhile...TPI Polene Plc said that Krung Thai Bank Plc has ceased its financial support to the company until the amendment of Thai Petrochemical Industry's rehabilitation plan is completed. The company issued a statement to the Stock Exchange of Thailand in response to news that Krung Thai Bank decided not to provide financial support to the company.  Under the Act of Securities Exchange and the Act of Commercial Banks, TPI Polene is considered as an associated company of Thai Petrochemical Industry, which owns 49.70 pct the company, the statement said.

Krung Thai Bank believes that problems with Thai Petrochemical Industry's and TPI Polene's rehabilitation plans should be absolutely and mutually solved at the same time, TPI Polene said. Krung Thai Bank previously agreed to provide TPI Polene a 750 mln usd loan facility allowing the latter to refinance a 1.0 bln usd debt.