Energy Earth rehab plan voted forward
Two-thirds of the creditors for SET-listed Energy Earth Plc have voted in favour of approving the company’s business rehabilitation plan, says Krungthai Bank (KTB) President Payong Srivanich.
KTB, Energy Earth’s largest creditor at 12 billion baht owed in principal and interest, voted to accept the plan, Mr Payong said.
Other creditors include Kasikornbank (KBank), to which Energy Earth owes 2.8 billion baht; Bank of Ayudhya; and the Export-Import Bank of Thailand.
KBank voted against the plan, citing how the issues surrounding loan collateral in the business rehabilitation plan were unclear.
“Hopefully, Energy Earth will be able to resume operations and service debts as stated in the rehabilitation plan,” Mr Payong said, adding that further credit given to the bank would be based on the plan.
The Central Bankruptcy Court is scheduled for a hearing to consider Energy Earth’s business rehabilitation plan on Oct 1, according to EY Corporate Advisory Services Ltd, Energy Earth’s rehabilitation planner.
Energy Earth failed to redeem two lots of bills of exchange (B/Es) worth 90 million baht that were due in June 2017. At the time it said the firm’s cash flow had been squeezed after its overdraft credit line was halted.
The company’s financial problems snowballed when a raft of its B/Es defaulted, triggering cross-default debentures worth 5.5 billion baht, compounded by failed efforts to seek fresh funding from financial institutions.
Energy Earth has also been accused by the Securities and Exchange Commission (SEC) of falsifying debt details in an attempt to conceal information from investors and to enter a business rehabilitation plan.
The market regulator has filed cases against 11 individuals who are current or former directors of Energy Earth with the Department of Special Investigation for further legal proceedings.
The SEC has accused Energy Earth of falsifying information or withholding important details on the company’s increasing debts, worth 26 billion baht.