En­ergy Earth forges deal with cred­i­tors


Fi­nan­cially be­lea­guered En­ergy Earth Plc has come to terms with its main cred­i­tors on a debt res­o­lu­tion un­der the com­pany’s busi­ness re­ha­bil­i­ta­tion plan, po­ten­tially let­ting En­ergy Earth con­tinue its busi­ness op­er­a­tions.

“The com­pany is willing to let fi­nan­cial in­sti­tu­tion cred­i­tors select a com­pany to man­age [En­ergy Earth’s] busi­ness re­ha­bil­i­ta­tion plan, [filed with] the Cen­tral Bank­ruptcy Court as deemed ap­pro­pri­ate by the cred­i­tors,” En­ergy Earth di­rec­tor Kha­john­pong Khamdee said in a re­lease.

“This will nor­malise the com­pany’s op­er­a­tions and main­tain its busi­ness value. Com­pany ex­ec­u­tives will co­op­er­ate and man­age the busi­ness un­der the re­ha­bil­i­ta­tion plan.”

Mr Kha­john­pong said the com­pany’s coal busi­ness still has fur­ther growth po­ten­tial and its busi­ness op­er­a­tions are ex­pected to pro­ceed, with help from fi­nan­cial in­sti­tu­tions.

SET-listed En­ergy Earth also wants to push sub­sidiary Guang­dong En­ergy Earth Co Ltd to list on Hong Kong’s stock ex­change as planned, he said.

Krungthai Bank (KTB) pres­i­dent Pay­ong Sri­vanich said ear­lier that En­ergy Earth’s cred­i­tors had not de­cided whether they would vote in favour of the busi­ness re­ha­bil­i­ta­tion plan pro­posed by the cash-strapped coal trader.

KTB, En­ergy Earth’s big­gest cred­i­tor, had said it would wait for ad­di­tional in­for­ma­tion from the first court hear­ing slated for Sept 18 be­fore mak­ing a de­ci­sion.

Mean­while, En­ergy Earth has asked the Se­cu­ri­ties and Ex­change Com­mis­sion (SEC) to ex­tend the dead­line to sub­mit a spe­cial au­dit re­port, as the com­pany’s au­di­tor is fi­nal­is­ing re­port prepa­ra­tions.

“The com­pany would like to in­form that the com­pany has ap­pointed Pricewater­house­Coop­ers ABAS Ltd to con­duct a spe­cial au­dit [on] the source of debt, and the com­pany is pre­pared to sub­mit the re­port [by] Sept 12, 2017, which will ex­ceed the 30-day dead­line [set by SEC], due to [how] the au­di­tor is in [the fi­nal process of ] re­port prepa­ra­tion,” En­ergy Earth said in a fil­ing with the Stock Ex­change of Thai­land. “The com­pany will re­quest the SEC ex­tend the sub­mis­sion date.”

En­ergy Earth had sub­mit­ted a re­ha­bil­i­ta­tion pe­ti­tion through the Cen­tral Bank­ruptcy Court on July 24 be­cause the com­pany had li­a­bil­i­ties in ex­cess of as­sets to­talling 26 bil­lion baht, a re­sult of pros­e­cu­tion by sup­pli­ers.

On Aug 9, the SEC or­dered En­ergy Earth to ar­range a spe­cial au­dit re­port re­gard­ing the source, ex­is­tence and sta­tus of ad­di­tional debt, as the amount of in­creased debt had reached 1.21 times the com­pany’s fi­nan­cial po­si­tion.

The re­port should be sub­mit­ted within 30 days, ac­cord­ing to the SEC.

En­ergy Earth has to­tal as­sets of 31.8 bil­lion baht and to­tal li­a­bil­i­ties of 47.5 bil­lion baht, ac­cord­ing to the com­pany’s re­vised state­ment sub­mit­ted to the SET and re­leased on Aug 1.

Of the com­pany’s to­tal debt of 21.5 bil­lion baht, 11 bil­lion baht is owed to fi­nan­cial in­sti­tu­tions, 5.5 bil­lion stems from bond is­suance, 2.4 bil­lion is from bills of ex­change, 938 mil­lion is from trade ac­counts payable and other payables, 1.2 bil­lion comes from short-term loans from sub­sidiaries, and 408 mil­lion is at­trib­uted to other li­a­bil­i­ties.

En­ergy Earth also has 26 bil­lion baht in con­tin­gent li­a­bil­ity pro­vi­sions.

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