Giant Italian-Thai behemoth fights for survival and to pay wages

[webfact]

The President of Italian-Thai Development Plc Premchai Karnasuta. His construction firm is the largest in Thailand. However, it is burdened with liabilities of ฿106 billion in a gathering financial storm which has seen it unable to pay wages. Mr Premchai was jailed by a Thai court in 2020 for illegal poaching. He was later released on parole in October 2023 on health grounds.
There are rising fears that Thailand could be facing a private-sector debt crisis. It comes as the country’s leading construction firm fights for survival.

Thai Construction behemoth Italian-Thai Development Plc (ITD) fights for survival amid a growing financial crisis. Intense negotiations are ongoing. Worker wages in limbo. Government and banks are on edge. Will Italian-Thai weather this storm as it did previously in 1997?

Intensive negotiations are underway to secure the future of Thailand’s top construction firm Italian-Thai Development plc (ITD). At this time, the focus is on securing a financial lifeline for the firm to pay outstanding salaries by the end of April. The firm shocked Thailand’s financial market in January when it deferred ฿14.45 billion in bond repayments for two years. Similarly, with a flood of complaints over unpaid wages, the Ministry of Labour has now been forced to intervene.

 

The firm recently requested an extension to file its financial statements for the year 2023 after its auditors refused to sign off on the accounts, citing the need for a review. The huge construction behemoth, established in Thailand in 1958, has been a key player in the kingdom’s economy and industrial development since. Its current predicament and financial distress could also certainly spell wider problems for Thailand’s economy.

 

Established in 1958 as a partnership between a Thai businessman and an Italian, the Italian Thai Development Corporation has played a key role in developing the country’s infrastructure.

 

by James Morris and Son Nguyen

 

Full story: Thai Examiner.com 2024-03-26

 

- Discover how Cigna Insurance can protect you with a range of visa-compliant plans that meet the minimum requirement of medical treatment. For more information on expat health insurance click here.

 

Get our Daily Newsletter - Click HERE to subscribe
 

[flyingtlger]

22 minutes ago, webfact said:

There are rising fears that Thailand could be facing a private-sector debt crisis. It comes as the country’s leading construction firm fights for survival.

 

Following china's lead......

[Middle Aged Grouch]

Foreigners will not invest in real estate any more with all the crooks who sell defective homes in major beach towns like Hua Hin

[Pdavies99]

2 hours ago, webfact said:

The President of Italian-Thai Development Plc Premchai Karnasuta. His construction firm is the largest in Thailand. However, it is burdened with liabilities of ฿106 billion in a gathering financial storm which has seen it unable to pay wages. Mr Premchai was jailed by a Thai court in 2020 for illegal poaching. He was later released on parole in October 2023 on health grounds.
There are rising fears that Thailand could be facing a private-sector debt crisis. It comes as the country’s leading construction firm fights for survival.

Thai Construction behemoth Italian-Thai Development Plc (ITD) fights for survival amid a growing financial crisis. Intense negotiations are ongoing. Worker wages in limbo. Government and banks are on edge. Will Italian-Thai weather this storm as it did previously in 1997?

Intensive negotiations are underway to secure the future of Thailand’s top construction firm Italian-Thai Development plc (ITD). At this time, the focus is on securing a financial lifeline for the firm to pay outstanding salaries by the end of April. The firm shocked Thailand’s financial market in January when it deferred ฿14.45 billion in bond repayments for two years. Similarly, with a flood of complaints over unpaid wages, the Ministry of Labour has now been forced to intervene.

 

The firm recently requested an extension to file its financial statements for the year 2023 after its auditors refused to sign off on the accounts, citing the need for a review. The huge construction behemoth, established in Thailand in 1958, has been a key player in the kingdom’s economy and industrial development since. Its current predicament and financial distress could also certainly spell wider problems for Thailand’s economy.

 

Established in 1958 as a partnership between a Thai businessman and an Italian, the Italian Thai Development Corporation has played a key role in developing the country’s infrastructure.

 

by James Morris and Son Nguyen

 

Full story: Thai Examiner.com 2024-03-26

 

- Discover how Cigna Insurance can protect you with a range of visa-compliant plans that meet the minimum requirement of medical treatment. For more information on expat health insurance click here.

 

Get our Daily Newsletter - Click HERE to subscribe
 

It looks like Thailand's financial mis-management in Government and Private business may be unravelling!!

[ExpatOilWorker]

Time to chance the name to Ital-bye 👋.

[ronster]

Karma for shooting the cat !! 😃

[hotchilli]

3 hours ago, webfact said:

There are rising fears that Thailand could be facing a private-sector debt crisis. It comes as the country’s leading construction firm fights for survival.

How the mighty fall, 

[jacko45k]

Just now, hotchilli said:

How the mighty fall, 

Yes, this is a big one.

[hotchilli]

Just now, jacko45k said:

Yes, this is a big one.

Maybe it's a sign that the overall economy is going south, and Thailand if it was honest would admit it's in dire straights?

[dick turpin]

Just now, hotchilli said:

Maybe it's a sign that the overall economy is going south, and Thailand if it was honest would admit it's in dire straights?

 

Or even dire straits

[nobodysfriend]

4 hours ago, webfact said:

Premchai Karnasuta.

 

4 hours ago, webfact said:

is burdened with liabilities of ฿106 billion in a gathering financial storm which has seen it unable to pay wages. Mr Premchai was jailed by a Thai court in 2020 for illegal poaching. He was later released on parole in October 2023 on health grounds.

 

The revenge of the black panther ...

[JoePai]

1 hour ago, dick turpin said:

 

Or even dire straits

Ah you mean 'Going Home'

[Tropicalevo]

2 hours ago, hotchilli said:

How the mighty fall, 

Sadly, they take down a lot of poor people as they do fall.

[brianthainess]

Cat soup anyone? 

 

[realfunster]

A look at their Q3 2023 financials shows a lot of significant matters identified by the auditor.

Looks like IT have got into bed with various governments for concessions including Myanmar, Laos and Mozambique. Seems these “assets” are unraveling now. Not an expert but doing business in these countries would seem excessively high risk…

 

After debacle at Stark, the last thing the SET needs is another major corporate scandal.

[ThaiFelix]

2 hours ago, hotchilli said:

How the mighty fall, 

No problem, Im sure there is still plenty of the black stuff still under the mattress or stashed offshore.

 

You break the laws of the country, get jailed rightly for it (but too short), your business suffers because of your guilt and you want sympathy?  Why not GoFundMe?

[hotchilli]

2 hours ago, dick turpin said:

 

Or even dire straits

Yep... that one 

[Nick Carter icp]

2 hours ago, dick turpin said:

 

Or even dire straits

 

  The problem is that they got too much money for nothing 

[hotchilli]

1 hour ago, Tropicalevo said:

Sadly, they take down a lot of poor people as they do fall.

Unfortunately yes.. 

[lordgrinz]

Karma has a way of fixing everything.

[huangnon]

2 hours ago, Tropicalevo said:

Sadly, they take down a lot of poor people as they do fall.

 

My BIL works for them on a port project in Rayong. He has not been paid for over two months now. Rumours are that SCB bank is buying them out.

[Hardcastle P]

4 hours ago, hotchilli said:

How the mighty fall, 

It's just a pity the employees and suppliers are the ones that suffer the most.

[Tropicalevo]

15 minutes ago, huangnon said:

 

My BIL works for them on a port project in Rayong. He has not been paid for over two months now. Rumours are that SCB bank is buying them out.

I hope that the rumours are true - for your BIL and all of the other poor sods struggling for cash in these trying times.

[jvs]

AN to the rescue!

[Doc Undies]

15 hours ago, dick turpin said:

 

Or even dire straits

Mark Knopfler concurs

[zhounan]

Thailand public companies are packed with do-nothing people with high wages.