Court orders Klongchan Credit Union enters rehabilitation scheme

[Lite Beer]

Court orders Klongchan Credit Union enters rehabilitation scheme

BANGKOK: -- The Central Bankruptcy Court today ordered the Klongchan Credit Union Cooperative to enter rehabilitation plan to recover its financial trouble with instruction that the plan be completed in three months.

The court also allows the existing management team to continue working and to prepare the rehabilitation plan to submit to its creditors for approval in three months.

Extension for the preparation of the rehabilitation plan is permitted twice, or 30 days each.

The court reasoned that there is strong possibility that the rehabilitation could retrieve its firm financial status with the help from the government.

It said allowing the cooperative to continue with the present situation of serious liquidity shortages will only affect so many members of the cooperative.

Klongchan Credit Union Cooperative chairman Phadej Mungthanya welcomed the court’s ruling saying it was a good news for the cooperative to enter the rehabilitation process.

He said a meeting would be called tomorrow to prepare details for the rehabilitation plan to submit to creditors in three months.

He earlier said that the agriculture minister pledged to seek cabinet approval for 5 billion baht fund to inject into the cooperative to resume operation if it was to enter rehabilitation process.

He said the cooperative now has launched a short term remedy plan to extend soft loans on to members.

Members can apply for the loan tomorrow, he said.

Source: http://englishnews.thaipbs.or.th/court-orders-klongchan-credit-union-enters-rehabilitation-scheme

-- Thai PBS 2015-03-20

[bangkokfrog]

"... could retrieve its firm financial status with the help from the government."

<deleted> does this mean ??? A bail-out because the stolen money went to people with connections ???

[Strangebrew]

Oh that makes sense Hey were are in trouble not enough money to pay creditors I got an idea let's make some soft loans to our customers, Is this Thai economic's 101? next thing you will know they will give a big raise and bonus to there top management. Now what makes good sense is top management take 30% cut in pay and work extra hours solving the mess they made. Start budget cuts and lowering operating costs. And once in good order again return to there old wages and not take a bonus till solvent again and millions of baht into the black.

Edited March 20, 2015 by Strangebrew

[JOC]

>>The court also allows the existing management team to continue working<< Quote

The the fox is allowed to continue to watch the chickens??

Criminals bailed out by the government?? Only in Thailand!!

[Tatsujin]

So, they're gonna get a government bailout, and then they get to < deleted > over everyone all over again whilst keeping their jobs, salaries, bonuses etc. Just like the financial institutions did in the west a while back.

[Friendly Stranger]

Oh that makes sense Hey were are in trouble not enough money to pay creditors I got an idea let's make some soft loans to our customers, Is this Thai economic's 101? next thing you will know they will give a big raise and bonus to there top management. Now what makes good sense is top management take 30% cut in pay and work extra hours solving the mess they made. Start budget cuts and lowering operating costs. And once in good order again return to there old wages and not take a bonus till solvent again and millions of baht into the black.

I wonder where they learned this from? These are amateurs by comparison.

Same garbage still happening as was pre 2008.

[maidee]

they cannot trace where all the billions went to ?

[khaowong1]

>>The court also allows the existing management team to continue working<< Quote

The the fox is allowed to continue to watch the chickens??

Criminals bailed out by the government?? Only in Thailand!!

No, not only in Thailand.. The US govt. did this also in their "Too big to fail" scheme. It's still a sore spot for many Americans.

[Lite Beer]

Cooperative told to prepare rehab plan
KESINEE TAENGKHIAO,
PIYANUT TAMNUKASETCHAI
THE NATION


Court open to request from klongchan credit union; agencies ready to help out

BANGKOK: -- THE BANKRUPTCY Court yesterday ordered the Klongchan Credit Union Cooperative's board to prepare a rehabilitation plan to manage the company's Bt21.9 billion debt - against Bt19.5 billion in assets - and aid its 56,000 members affected by the Bt16-billion embezzlement case.

The rehabilitation plan would be submitted in three months.

The court said the debt problem stemmed from the cooperative's then president investing in businesses that were not in line with the Cooperatives Act 1999. It said the investments, which should not be held against the cooperative's bid for rehabilitation, took place from 2009-2012.

Most of Klongchan's creditors backed the rehabilitation plan and state agencies were ready to provide assistance.

The court found the cooperative's request for rehabilitation lawful and without debt-evading intent, and as such it qualified for rehabilitation.

Department of Legal Execution (DLE) chief Reuwadee Suwanmongkol said her office would send the court order and a form for a repayment request to customers whose savings were affected by the embezzlement. They must return the completed form before May 7 or miss out on the chance to get their money back, she said.

She said the DLE would ask the creditors to ratify the rehabilitation plan before submitting it to the court.

Current cooperative chairman Padet Mungthanya told reporters after the court ruling that the board was expected to submit the plan in three months to the DLE, but could ask for two one-month extensions. He said the aim was to complete the rehabilitation in five years although the board could ask for two one-year extensions.

Padet said he was confident the plan would work, citing the Agriculture and Cooperatives minister's promise to provide it Bt5 billion in aid and Wat Dhammakaya's promise to return Bt684 million to the cooperative, with the first instalment of Bt100 million.

He also said old debtors, who owed Bt2 billion in total, would start repaying money. Padet said the cooperative's board would create a road map of the rehabilitation plan today. The affected customers could submit a request for a remedial payment - 10 per cent of the money owed to them or up to Bt20,000 per month - from today. The remedial payment should start next month, he added.

Lawyer Decha Kittiwittayanan, representing creditors Rajavithi Hospital Savings and Credit Cooperative and the Office of Narcotics Control Board Savings Cooperative, said he would meet with other creditors to discuss their options.

He said the first thing to do was file a request in one month for Klongchan to repay its debts and then monitor implementation of the rehabilitation plan to make sure it was satisfactory.

Anti-Money Laundering Office chief Sihanart Prayoonrat said the agency would next week allow Klongchan executives to join its meeting to discuss the Bt5 billion in assets seized from former cooperatives chairman Supachai Srisupa-aksorn.

Padet met yesterday with Justice Minister General Paiboon Khumchaya and ministerial executives to thank them for acting on the case speedily so the cooperative could enter rehabilitation.

Source: http://www.nationmultimedia.com/national/Cooperative-told-to-prepare-rehab-plan-30256471.html

-- The Nation 2015-02-21

[mike324]

So who was thrown in jail? There must be more than one to pull of this massive scam right?