07 May 2004 06:18 [Source: ICIS news]
SINGAPORE (CNI)--Thailand’s National Fertilizer Co (NFC) has increased its registered capital to Baht648.6m by issuing 58.37m new common shares to creditors at a par value of Baht10 ($0.25/Euro0.208) each.
The move is part of a debt-to-equity conversion that has been approved by Thailand’s Central Bankruptcy Court. NFC’s main creditors are the Thai Asset Management Corporation (TAMC) and Siam Commercial Bank PLC (SCB). TAMC will receive 43.41m shares while SCB will receive 15.23m.
NFC said the capital increase would provide sufficient capital for the company to operate from a stable base.
The capital increase follows a capital reduction. NFC cancelled unpaid registered capital shares worth Baht180.5m and reduced the number of the paid-up registered shares from 1.31bn to 3.95m at a par value of Baht10.
NFC is based in Mab Ta Phut petrochemical zone, Rayong province, where it operates facilites that can produce 280 000 tonne/year of phosphoric acid, 460 000 tonne/year sulphuric acid, and 1.1m tonne/year of nitrophosphate.
The company hopes to further resolve its debt problems by attracting strategic investors. Chinese fertiliser major, the Xiyang Group, and Thai construction company the Picon Group, have signed an MoU to jointly acquire a strategic stake in NFC.
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