ACAP to seize Orion land
Asia Capital Group Plc (ACAP) is poised to take legal action to seize land and buildings mortgaged by Orion Development for a 300-million-baht credit facility after a breach of a loan covenant.
Under the loan covenant, the borrower must receive ACAP’s consent for any change in the company’s shareholder structure, said ACAP chief executive Suganya Sukjaroenkraisri. But Orion failed to comply with the requirement, leading ACAP to initiate the seizure, she said.
Orion, of which Thian Klaymalakul is an authorised director, secured the 300-million-baht credit line from ACAP in November last year.
The appraisal price of the mortgaged plots was 234.9 million baht. The value was expected to increase to 1.28 billion when construction of a condominium project on the plots is completed. The condominium is under construction.
Apart from the land plots, ACAP also required Mr Thian to put up all of Orion’s shares as collateral for the credit line to protect against default risk.
ACAP already deducted 45 million baht for a 12-month interest payment in advance, so the net credit line was at 255 million. Some 70 million was paid to Orion’s informal lender and the remaining 185 million will be doled out in instalments based on construction development, Ms Suganya said.
She said to protect against risk, the company required Mr Thian to execute the guarantee and a share pledge agreement to secure repayment of the loan, as well as registration of the mortgage of the land and building.
ACAP is confident the land title deeds are legitimate and the land plots were evaluated by two appraisers accredited by the Securities and Exchange Commission.
The lender later suspended Orion’s credit line disbursement after Mr Thian informed the company some groups used forged documents to register as Orion’s shareholders and change directors.
“The company will not suffer a loss as we have the land title deeds in hand, while the borrower only took out 77 million baht worth of loans, well below the appraisal value,” said Ms Suganya.
“We don’t care which people are bogus as we only stick to the official documents. Moreover, all three shareholders showed up on the date of contract signing.”
ACAP shares closed yesterday on the Stock Exchange of Thailand at 19.60 baht, down 50 satang, in trade worth 75.8 million baht.