Thai NFC enters debt restructuring plan

19 January 2004 04:57  [Source: ICIS news]

SINGAPORE (CNI)--Thailand’s National Fertilizer Public Co (NFC) on Monday said that the Central Bankruptcy Court had approved its business rehabilitation plan and appointed CJ Morgan Co as the company’s debt plan administrator

The company said that all of the rights, powers and duties of CJ Morgan as the administrator were vested in the firm from the date of the court’s approval on 30 December 2003.

The plan was approved by 98.11% of the company’s creditors, NFC said. The debt plan calls for a capital restructuring allowing for debt-to-equity conversion and the buying into the company by a strategic partner.

Under the plan NFC will reduce and cancel the unpaid registered capital 180.5m shares, valued at Baht1.81bn ($46m/Euro37.2m). It will reduce the number of paid-up registered shares from 1.3bn to 6.49m shares at the par value Baht10.

It will thereafter increase its registered capital by at least 58.37m shares by converting debt to equity for top-tier secured creditors at the conversion of debt to equity Baht10/share, so the new registered capital will be Baht648.62m (64,861,972 shares)

The proportion of equity present shareholders will decrease to 10% of the new registered capital, NFC said.

The company will further increase its registered capital at least 158.8m shares by issuing new ordinary shares through a private placement to its selected strategic partner, a joint venture between Chinese fertiliser company  Xiyang Group and Thailand's Thaipicon & Industry Co, at Baht10/share. NFC will receive at least Baht1.59bn from the strategic partner, which will be used to pay secured creditors.

After the second increase in registered capital, NFC may increase the paid-up capital for the shares that have not yet been issued so that NFC will have capital in the amount of not less than Baht3bn, or 300m shares at a par value of Baht10/share.

Within 90 days after the court approval of the plan, NFC will issue three-year zero-interest debentures to secured top-tier creditors for the total amount of Baht200m.

The secured creditors include the government-founded debt restructuring agency, the Thai Asset Management Corp (TAMC), and Siam Commercial Bank PLC.

The secured creditors will receive the principal amount of Baht188.3m, or 70% of the appraisal value, to be paid within 30 days from the effective date of the debt restructuring in a non-cash payment involving the transfer of ownership in land and buildings that have been mortgaged by the secured creditors.
 
The principal amount of Baht78m will be paid in cash within 15 days from the effective date of the debt restructuring without interest.

The principal amount of Baht583.76m will be paid without interest through debt-to-equity conversion of NFC in the amount of 58.38m shares at Baht10/share.

Various repayment schemes have also been developed for the company’s unsecured creditors, NFC added.

 

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