Central Bankruptcy Court dismisses two more petitions to end TPI dispute

13-Dec-05

Two more petitions from Prachai Leophairatana challenging the restructuring plan of Thai Petrochemical Industry (TPI) have been dismissed by the Central Bankruptcy Court. This clears the way for state-controlled energy giant PTT and its strategic partners to obtain a controlling stake in the company next Tuesday. The decision could be a final signal to end years of legal battle over control of Southeast Asia’s largest petrochemical facility. PTT intends to buy a 31.5% stake in the company, while its restructuring plan partners – including the Government Savings bank, the Government Pension Fund and the state-run Vayupak Fund-One – will each purchase 10% stakes. PTT and partners plan to inject about 50-billion-baht worth of capital into the country’s largest corporate debtor stemming from the 1997 financial crisis. TPI’s refinancing plan calls for 17.55 billion shares, representing some 90% of the company, to be sold at 3.30 baht apiece. The money raised from the sale will be used to cut TPI’s US$2.7 billion debt. Of the two petitions rejected, one called for the court to halt the share offering to PTT, and the other asked the court to increase the selling price of those shares.