TPI asks court for exit from debt restructuring status

TPI asks court for exit from debt restructuring status
05 January 2006

TPI will ask the Central Bankruptcy Court on 29 December for approval to exit business rehabilitation, according to Gen Mongkol Ampornpisit, the chairman of the rehabilitation plan administration team, the Bangkok Post reports. 
The government-appointed administrator will also repay debts of US$1.48bn on 29 December to the creditors of TPI, the country’s biggest corporate debtor. 
The money comes from the sale of new TPI shares to strategic investors led by PTT Plc, existing creditors and the sale of 249 million shares of cement subsidiary TPI Polene Plc. "After the debt repayment is completed, TPI is ready to exit the rehabilitation plan since all procedures under the plan have been completed," Gen Mongkol said. 
One day after the company exits rehabilitation, the administrator will call a shareholders’ meeting to seek approval for restructuring the TPI board.
Administrators are confident that it will run smoothly, although Prachai Leophairatana, TPI’s founder, is expected to file a petition against the request. Mr Prachai has waged legal battles for seven years to preserve his control of the company. 
"We have accomplished our mission assigned by the Finance Ministry to revive the company and pave the way for it to become one of the best petrochemical complexes in Asia," Gen Mongkol said. 
TPI expects revenue this year of THB186bn, up from THB154bn in 2004. However, its EBITDA are expected to decline to THB18.7bn from THB22.6bn, due to higher crude oil prices.  Published under Cement News