Power struggle intensifies at IFEC

Conflict leaves B/E payments in doubt

A tug-of-war among major shareholders of Inter Far East Energy Corporation Plc (IFEC), a SET-listed renewable power company, has continued after some board members, along with the shareholder they represent, walked out of a meeting yesterday.

The collapse of the board meeting bodes poorly for the company’s bill of exchange (B/E) payments worth 1.2 billion baht, which will soon be due.

Four board members who are representatives of Thavich Taychanavakul, along with Mr Thavich himself, walked out of the meeting yesterday, since the first item on their agenda, the removal of chairman of the board, Wichai Thavornwattanayong, was blocked by Mr Wichai.

Mr Thavich, who owns a 10% stake in IFEC, proposed replacing Mr Wichai with former deputy national police chief Pol Gen Sunthorn Saikwan, but Mr Wichai, who holds a 2% stake, insisted on chairing the meeting.

The five board members also disagreed with Mr Wichai’s plan for the company to divest itself of wholly owned Dhara Dhevi Hotel in Chiang Mai province, saying that had not been involved in that process from the outset.

IFEC will remain stuck in stalemate if the board of directors fails to jointly tackle several problems in need of urgent attention, including submitting the company’s 2016 financial statements to the Stock Exchange of Thailand by March 31 and seeking funding to pay off the B/Es, which will be due soon, said Mr Thavich.

“If we fail to resolve these problems, all of the B/Es may default,” he said.

Mr Thavich said that 2 billion baht out of 3.2 billion worth of B/Es had already defaulted.

IFEC defaulted on its due non-rated B/Es late last year and has thus far failed to pay almost all of its defaulted B/Es due to internal conflicts.

Recently, three IFEC B/E holders brushed aside Mr Wichai’s claims that he had succeeded in asking them to roll over the portion of B/E debt worth 1.2 billion baht.

Apart from B/Es, it is possible that IFEC’s debenture holders will call for early redemption, he said, adding that the 3 billion baht in debentures will expire in November.

The company also owes another 2 billion baht worth of project financing.