TPI debt rescue package approved

TPI debt rescue package approved
06 August 2004


Thailand’s finance ministry has approved a business reorganisation plan for the debt-ridden Thai Petrochemical Industry that could involve state-owned refiner PTT Plc taking a strategic stake, TPI’s debt administrator said Thursday. Under the proposal, TPI would repay $1.8bn of its total $2.7bn debt over 12 years in four tranches: $500m within five years from receiving approval for the repayment plan from the bankruptcy court, $850m from the sixth to tenth year, $150m on the tenth year and $300m on the 12th year, the administrator said. The remaining $900m would be repaid with proceeds from selling TPI’s shareholding of over 30% (worth about $250m) in cement maker TPI Polene, and the sale of $650m worth of new shares and existing shares now held by creditors, he said. Creditors would transfer their shares to the finance ministry, which would sell them to selected strategic investors such as PTT.  The finance ministry would like PTT and other government funds/entities to jointly hold around 60% in TPI.
Published under Cement News