Bangkok--Jan 5--SET
The Executive Vice President of The Stock Exchange of Thailand (SET), Mr.
Suthichai Chitvanich, said that it is expected that 22 listed companies in the
REHABCO (Companies under rehabilitation) Sector will be able to be reinstated back
to their normal sectors in 2005.
“As of November 20, 2004, there were seven companies sufficiently healthy
and reinstated back. And, after the end of the 2004 accounting period, we expect to
see another 6 companies moving back. The companies having asked the SET to move back
to their normal sectors include Eastern Printing Pcl. (EPCO), Preecha Group Pcl.
(PRECHA), Inter Far East Engineering Pcl. (IFEC), Power-P Pcl. (PP),” said Mr.
Suthichai.
Mr. Kittiratt Na-Ranong, the SET President, has been concerned about the
rights and benefits of small shareholders. He therefore has been very supportive
and has pushed for a debt restructuring process that establishes as a priority the
benefits of existing shareholders whilst gaining the cooperation of new ventures
and creditors. These cases include the NFC Fertilizer Pcl. (NFC), Manager Media
Group Pcl. (MGR), and Thai-German Products Pcl. (TGPRO).
Even though generally the companies in the REHABCO Sector are likely to
recover, there are still some companies which will find it difficult to reinstate
back to their normal sectors in 2005. One of the main obstacles is their business
viability after the rehabilitation. The SET will therefore be working closely with
these companies as well as coordinating with related parties to help resolve the
problems.
In 2005, the SET will, periodically, notify the listed companies, their
creditors, and retail shareholders about the companies likely to face delisting
when the deadline for the 3-year rehabilitation period, or March 28, 2006,
approaches.
In 2004, seven companies were removed from the REHABCO Sector, and are
trading in their regular sectors—EMC Pcl. (EMC), Natural Park Pcl. (N-PARK) and
Millennium Steel Pcl. (MS), Raimon Land Pcl. (RAIMON), Christiani & Nielsen (Thai)
Pcl. (CNT), Syntec Construction Pcl. (SYNTEC), and Eastern Wire Pcl. (EWC).
Eligible companies for reinstating to their regular sectors must 1) have
the shareholder’s equity higher than zero, 2) receive net profits from their core
business for 3 successive quarters for one year prior to applying for reinstating,
3) have more than 75% of their debts restructured, and can service the debts on
time during the period having been considered for reinstatement, and 4) can prove
that their financial standings and operation are firm and move in line consistent
with their industries. The companies’ cash flows will also be an addition factor
under consideration.
Change in the Number of Listed Companies in the REHABCO Sector
From Early 1998 to Year-End 2005* (Estimated)
REHABCO 1998 1999 2000 2001 2002 2003 2004 2005* Total
Beginning of the year 0 33 46 45 51 51 45 35
Moved to REHABCO Sector during the year 44 21 9 11 4 4 3 0 96
Reinstated back to regular sectors 0 0 3 2 4 8 13* 22 52
Delisted during the year 11 8 7 3 0 2 0 0 31
Remaining at Year-End 33 46 45 51 51 45 35 13
*Estimated
For more information,
please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 /
Kulvida Jintakawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 End.