SEC to probe PP Prime pay claim

The Securities and Exchange Commission (SEC) will examine the truthfulness of a debenture payment made by SET-listed PP Prime Plc to debenture holders through registrar Siam Commercial Bank (SCB).

The Stock Exchange of Thailand (SET) will collect all relevant information and forward it to the SEC for further investigation, said SEC assistant secretary-general Sakkarin Ruamrangsri.

The case has yet to be forwarded to the SEC, said Mr Sakkarin.

PP Prime, a maker and distributor of aquatic animal feed, has defaulted on two series of debentures worth a combined 580 million baht, both of which are specified as unsecured corporate bonds with maturity dates this year.

Of the debt valued at 260.5 million baht for the first series, PP Prime said it already paid 216.8 million to debenture holders through the debenture registrar on July 30 and would pay interest and principal by Aug 2.

SCB, as PP Prime’s debenture registrar, said the 216.8 million baht payment is inaccurate because PP Prime “did not deposit the funds into its debenture payment account” on July 30.

“The transfer into debenture holders’ accounts was an automatic deduction due to an SCB error,” said SCB in its statement.

The SET yesterday suspended trading of PP Prime shares again “until the company is able to clarify such information”.

Debenture holders of PP Prime can proceed with a lawsuit to the Civil Court to ask for compensation, but the court will decide whether to consider the case as a collective lawsuit, said Mr Sakkarin.

In a separate development, the SEC is studying the possibility of dividing the sum from civil sanctions paid by wrongdoers to affected investors, especially bondholders, for damage compensation.

All of the payments from civil sanction cases are currently sent to the Finance Ministry.

“The proposal from the participants — that civil penalties and benefits disgorged from the wrongdoer should be distributed as a remedy for aggrieved investors — can be explored and researched,” said Thawatchai Pittayasophon, senior assistant director of the SEC’s legal department. “If the proposal will be implemented, the Securities and Exchange Act must also be amended.”