Energy Earth agrees upon rehab adviser
Financially beleaguered Energy Earth Plc and its creditors have agreed to appoint EY Corporate Advisory Services Ltd to manage the company’s business rehabilitation plan.
“Energy Earth has proceeded with filing a petition to the Central Bankruptcy Court for considering the appointment of EY Corporate Advisory Services Ltd or EY as planner and supervisor of [Energy Earth’s] business rehabilitation plan,” Energy Earth director Khajohnpong Khamdee said in a release.
The appointment is a step towards the company’s debt resolution plan, enabling Energy Earth to proceed with its business operations as normal until it can register decent revenue and repay its debt, said Mr Khajohnpong.
The latest development contrasts with recent remarks by state-owned Krungthai Bank (KTB), Energy Earth Plc’s largest creditor, on how it was waiting for the debtor’s special audit report on its sources of debt before making a decision on the cash-strapped coal trader’s business rehabilitation plan.
The bank plans to consider Energy Earth’s special audit and later aims to hold talks with the debtor concerning its debt restructuring and business rehabilitation plan, said KTB president Payong Srivanich.
Energy Earth submitted a rehabilitation petition through the Central Bankruptcy Court on July 24 because it had liabilities in excess of assets, having recorded contingent liabilities worth 26 billion baht.
On Aug 9, the Securities and Exchange Commission ordered Energy Earth to arrange the special audit report regarding the sources, existence and status of additional debt, as the debt had reached 1.21 times the company’s financial position.
The company was scheduled to submit the report yesterday. Energy Earth owes 12 billion baht in principal and interest to KTB. Other bank creditors are Kasikornbank, Bank of Ayudhya and Export-Import Bank of Thailand.
Energy Earth has total assets of 31.8 billion baht and total liabilities of 47.5 billion, according to the company’s revised statement submitted to the SET and released on Aug 1.