Thai Supreme Court rules against Prachai

The Supreme Court on Tuesday threw out Prachai Leophairatana’s petition to buy back into Thai Petrochemical Industry Plc (TPI), paving the way for PTT Plc and its allies to take over the country’s largest debt defaulter. The Supreme Court’s verdict has effectively brought to an end the seven-year saga surrounding Prachai’s stubborn and at times desperate attempts to reclaim control over the company his family founded. Earlier, there were fears in the financial markets that the court’s verdict might go in Prachai’s favour. That could have prompted concerns that the Thaksin government’s economic reforms had hit a snag.

With the Supreme Court’s ruling, there is nothing Prachai can now do to stop the TPI’s debt-restructuring plan, said Trithip Sivakriskul, a member with TPI’s plan administrator. In the wake of the ruling, Prachai cancelled a press conference and refused to comment on the Supreme Court’s ruling.