Major creditors to rescue distressed Italian-Thai Development

[webfact]

 

Italian-Thai Development (ITD) Plc, currently facing financial distress, is set to receive an infusion of funds from its major creditors. The provision of fresh capital is aimed at bolstering the company’s operations without necessitating any rehabilitation plan.

 

Bangkok Bank (BBL) President Chartsiri Sophonpanich, who is also a key ITD creditor, underlined the strong long-term business prospects of ITD, despite the company currently grappling with liquidity issues. Chartsiri confirmed that BBL, along with other significant creditors, is ready to offer financial support to ITD.

 

“BBL is committed to assisting the customer by providing supplementary liquidity, working capital and facilitating debt restructuring. In addition, every major creditor has assisted ITD with its debt restructuring efforts, so ITD does not need to prepare any rehabilitation plans.”

BBL, recognised as the country’s largest lender by total assets and a primary creditor to ITD, chose not to reveal the exact sum of loans it has extended to the beleaguered contractor. The bank also did not disclose the identity of the largest lender among all the primary creditors.

Apart from BBL, other major creditors of ITD include Kasikornbank, Krungthai Bank, and Siam Commercial Bank.

 

Last week, ITD communicated to the Stock Exchange of Thailand (SET) that it has been in discussions with primary creditors to secure financial backing for both short-term and long-term needs to resolve its liquidity challenges. It has received partial support so far and expects to finalise loan agreements to ensure the continuity of its operations.

 

Company debt

 

Additionally, ITD’s creditors have initially agreed to waive the company’s debt-to-equity ratio requirements, after the company failed to uphold the financial ratio condition.

 

However, ITD is implementing modifications to its operational and control systems with an objective to cut costs and improve performance. This step is crucial to ensure the company’s ability to compete effectively and generate profits from its operations.

 

Referring to the Dawei Special Economic Zone (DSEZ) full-phase investment project in Myanmar, ITD reaffirmed to all stakeholders, as per its statement to the SET, that its rights to reimbursement for previous investments remain protected under the Tripartite Memorandum.

 

On the situation in Myanmar, Chartsiri noted that the operations at BBL’s Yangon branch are functioning normally despite the ongoing civil unrest, with contingency plans ready to ensure service continuity. Catering exclusively to corporate clients, BBL’s Yangon branch serves local, Thai, and international companies.

 

Chartsiri added that large Thai corporate entities continue to exhibit a positive trend in regional business expansion, aligning with the growth potential of ASEAN, reported Bangkok Post.

 

by Alex Morgan

Picture courtesy of ITD

 

Source: The Thaiger 2024-04-19

 

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[mfd101]

Mmmm, big player, Myanmar connections, looking shaky ...

[hotchilli]

9 hours ago, webfact said:

Bangkok Bank (BBL) President Chartsiri Sophonpanich, who is also a key ITD creditor, underlined the strong long-term business prospects of ITD, despite the company currently grappling with liquidity issues. Chartsiri confirmed that BBL, along with other significant creditors, is ready to offer financial support to ITD.

Sweet deal...

[Paul Henry]

The could sell ilegal black panther skins and meat along with a whole range of other protected animal species.

Better still run safari tours to shoot your own!

[Cake Monster]

9 hours ago, webfact said:

BBL, recognised as the country’s largest lender by total assets and a primary creditor to ITD, chose not to reveal the exact sum of loans it has extended to the beleaguered contractor. The bank also did not disclose the identity of the largest lender among all the primary creditors.

Apart from BBL, other major creditors of ITD include Kasikornbank, Krungthai Bank, and Siam Commercial Bank.

According to another source of news out of BKK a couple of days ago, a very large sum of Money has been loaned out by these Banks to Italian Thai already.

A considerable percentage of it being in the form of unsecured Loans

These Creditors have absolutely no choice at all in their action of trying to keep IT afloat.

They have to try and secure their money back after lending against poor quality 

Any defaults by IT would hit the Banks very hard indeed, down grading their credit worthiness at the very least

Stormy seas ahead me thinks

Edited April 19 by Cake Monster

[Deli]

Burn Fatty, burn !

[spidermike007]

I believe the Italian-Thai Development (ITD) Plc. is currently building the Rama 2 project leading out of Bangkok southbound. This overhead highway seems to have been under construction already for the last 10 or 15 years and considering that they're only a kilometer 36 it looks like they might have 10 to 30 years to go.

 

So this company obviously needs help, they are moving very slowly, the project is a disaster with constant construction going on, both in and out of Bangkok.

 

It's actually quite an abomination. 

[cncltd1973]

no doubt looking to complete the projects to sell to the Chinese and Russians asap

 

[john donson]

no mention how much money it is about ?

 

enough to put the bank .... ???

 

 

[Emdog]

Rule number one from biz school being ignored: "Don't throw good money after bad"

[mfd101]

Thailand - the hub of crony capitalism.

[sammieuk1]

Anyone with a big gun and BBQ can join in the rescue 🤔

[Dan O]

On 4/19/2024 at 1:58 PM, hotchilli said:

Sweet deal...

Perhaps they should read up on the financial fiasco that just went down in Vietnam within their banking system for some tips on what not to do if they want to stay solvent. People banking with Bankok Bank should check up on the limits of their account protection and consider their risk on their account deposits. Its not over until the fat lady or in this case the fat man sings. I think I hear the music playing in the distance.  

[Mr Meeseeks]

On 4/19/2024 at 2:12 PM, Paul Henry said:

The could sell ilegal black panther skins and meat along with a whole range of other protected animal species.

Better still run safari tours to shoot your own!

 

Chiang Mai Night Safari already tried that.

 

Kenyan conservationists reacted with anger yesterday to news that a Thai zoo to which animals are being exported in a controversial deal is planning to serve an exotic game buffet to VIP guests.

Guests at the opening of the Chiang Mai night safari zoo in northern Thailand will tuck in to a menu featuring tiger, lion, elephant and giraffe. Plodprasop Suraswadi, director of the zoo project, told reporters that guests will pay 4,500 baht (£64) each for a meal in which dishes range from locally reared dog meat to lion from Africa.

Kenya last week agreed to export over 100 wild animals to Thailand, including zebra, flamingoes, buffalo, wildebeest and hyena, despite protests by wildlife experts and Masai elders. None of the animals is from an endangered species.

https://www.theguardian.com/world/2005/nov/19/animalwelfare.kenya

 

It should be noted that it was endorsed by the then PM, Thaksin, who visited Kenya to strike the deal for the animals.

[John Drake]

On 4/19/2024 at 4:56 AM, webfact said:

The provision of fresh capital is aimed at bolstering the company’s operations without necessitating any rehabilitation plan.

 

So the business practices that put it in its current crisis will continue?

[lapamita]

On 4/19/2024 at 8:58 AM, hotchilli said:

Sweet deal...

as more big or more conncetions , however in thai or anywhere ,you will be rescued

2nd default for ITD ,last 1999-2003

Edited April 21 by lapamita

[kickstart]

On 4/19/2024 at 2:57 PM, spidermike007 said:

I believe the Italian-Thai Development (ITD) Plc. is currently building the Rama 2 project leading out of Bangkok southbound. This overhead highway seems to have been under construction already for the last 10 or 15 years and considering that they're only a kilometer 36 it looks like they might have 10 to 30 years to go.

 

So this company obviously needs help, they are moving very slowly, the project is a disaster with constant construction going on, both in and out of Bangkok.

 

It's actually quite an abomination. 

They is definitely sometime well wrong with the management/running of the company they have been the main contractors of Bangkok's BTS ,the sky train, since day one, over 25 years ago now.  and it is still on going.

If they cannot make any money now, as I said something is well wrong.