PTT to buy stake in TPI in lieu of management

22-Sep-05

A consortium led by Thai oil and gas conglomerate PTT PCL has agreed to buy a 61.5% stake in TPI as part of a court-approved rehabilitation plan. PTT is keen to buy a majority stake in debt-ridden Thai Petrochemical Industry PCL (TPI), subject to getting a major role in TPI's management. TPI's board of directors currently has no active role, as the company is still under the management of the court-appointed administrator. Thailand's Central Bankruptcy Court turned down a request by the administrator of TPI that it be granted the authority to appoint new members to TPI's board of directors, a move planned for the appointment of PTT representatives. The Court has said that PTT can get seats on TPI's board after it pays for the shares. If PTT fails to make payment for TPI's shares by the court's Nov. 4 deadline, TPI would have to convert its debts into equity for creditors in accordance with the debt restructuring plan.