TPI Polene plans THB6.9B provision in 3Q for fine

TPI Polene plans THB6.9B provision in 3Q for fine
15 August 2008

Thai producer TPI Polene plans to set aside a THB6.9bn (US$204m) loss provision in the third quarter for a fine stemming from a stock manipulation conviction, Krungthep Turakij Online reported Friday quoting the company’s founder and director Prachai Leophairatana.
The provision would drag the company into the red for the third quarter and for the year, Prachai said, according to the report.
The Stock Exchange of Thailand has suspended TPI Polene’s shares since Thursday morning after the cement maker failed to clarify how it would pay the fine and respond to another court order for the seizure of assets.
"(The court) can’t seize the assets now as the company is in the rehabilitation process and we have submitted the appeal to the court," Prachai said.
"The issue is now under the consideration of the Court of Appeal and we have to see what the court would say."
The Criminal Court issued an order dated Aug. 6 to accept the company’s appeal against the asset seizure, TPI Polene said in a statement Friday.
Thailand’s Criminal Court last December found TPI Polene and Prachai guilty of stock manipulation. The court slapped the company, Thailand’s third largest cement maker, with a large fine and sentenced Prachai, then leader of a minor political party, Machima Thipataya, to three years jail.
The Stock Exchange of Thailand said TPI Polene’s disclosure in late May about the appeals process "is not in concert" with recent statements by the Criminal Court.
Published under Cement News