27 November 2001 08:01 [Source: ICIS news]
SINGAPORE (CNI)--Thailand's heavily indebted National Fertilizer Co (NFC) has posted a net loss for the first nine months of its financial year to 30 September 2001 which amounts to more than half of its net sales.
The state-owned company registered a net loss of Baht1.4bn ($31.7m/Euro35.9m) on net sales of just Baht2.78bn for the first three quarters of this year. Its net loss for the same period in 2000 was Baht1.19bn on net sales of Baht3.55bn.
The Thai government has approved a debt restructuring plan for NFC's debts which amount to Baht8.6bn ($190.5m/Euro223.3m). It also issued an ultimatum to the company to formulate its own rescue plan by end-2001, or face closure.
An NFC spokesman said the company hoped to have a rescue plan in place by Q1 2002.
NFC has been incurring losses since mid-1997, when the depegging of the Thai baht dragged Thailand and most of the rest of Asia into financial crisis.
The company started receiving instalments of a Baht600m loan from the Petroleum Authority of Thailand (PTT) at the start of August this year to help it tide over an acute working capital shortage.
NFC has pledged fertiliser stocks as security for the loan, which will have to be repaid in monthly instalments of around Baht50m each.
PTT, a state-owned body, is the major shareholder in NFC with a 20.44% stake. The Industrial Finance Corp of Thailand is next with 16.7%, followed by the Government Savings Bank with 12.8%.
Meanwhile, the heavily indebted fertiliser producer is in the process of appointing a financial advisor to help restructure its debt.
NFC produces compound and straight fertilliser. In addition, it sells gypsum - a byproduct.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|