Energy Earth creditors turn to Amlo
Some 40 bond creditors of SET-listed Energy Earth Plc (EARTH) met yesterday with Anti-Money Laundering Office (Amlo) officials to submit a letter requesting an examination into money transactions and asset transfers conducted by the company’s executives and management.
Jaroonsak Thienprapan, leader of Energy Earth’s bond creditors, said the company has been stuck in a business rehabilitation plan for more than two years, with no follow-up on how the company has proceeded with such plan.
With Energy Earth’s business rehab plan in limbo, investors have not received information on its progress, said Mr Jaroonsak.
“The fiasco happening with Energy Earth involves a lot of people. We want Amlo and the Department of Special Investigation [DSI] to examine all the management involved with this case to cover damages incurred by investors, especially retail bond creditors who are mostly retirees,” he said.
There are around 2,800 bond creditors invested in Energy Earth, with total investment worth 5.5 billion baht, said Mr Jaroonsak.
Energy Earth issued two bond series, with the first lot valued at 1.5 billion baht and the second 4 billion.
Krungthai Bank (KTB) was the lead underwriter for the bond issuances, while the five co-underwriters were KT Zmico Securities, KGI Securities, Asia Plus Securities, Globlex Securities, and Bank of Ayudhya.
Earlier, KTB chairman Ekniti Nitithanprapas said the outcome of its probe on loan extensions to Energy Earth found wrongdoers at both the operating and management levels.
KTB is Energy Earth’s largest creditor with total debt plus interest of 12 billion baht.
Energy Earth failed to redeem two lots of bills of exchange (B/Es) worth 90 million baht that were due in June 2017.
The company’s financial problems snowballed when a raft of 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’s business rehabilitation plan arranged by EY Corporate Advisory Services Ltd has also been rejected by the Central Bankruptcy Court.
Pol Maj Gen Preecha Charoensahayanon, acting secretary-general of Amlo, said the office has already received the letter from Energy Earth’s bond creditors.
Amlo is investigating the case after it was forwarded to the office as a special case, said Pol Maj Gen Preecha.
On Nov 11, Amlo sent the case to its investigation committee to examine money transactions and asset transfers, he said.