SEC to approach creditors with debt-revamp plan

<p> <span lang=\"EN-GB\">&quot;If our creditors approve our debt rehabilitation plan, we will start to operate our business next year,&quot; Kittima Sudasna na Ayudhya, assistant managing director for marketing, told a press conference yesterday.</span></p> <p> <span lang=\"EN-GB\">The company ran into financial problems in 2008, he said.</span></p> <p> <span lang=\"EN-GB\">It had to suspend sales of imported luxury automobiles because its suppliers cancelled their agreements. That forced the company to shut down five of its seven branches and lay off 200 of its workforce of 300. </span></p> <p> <span lang=\"EN-GB\">The company&rsquo;s revenue now comes from charging for car maintenance services and earning commissions on car consignment sales. This averages Bt8 million a month for each of the two remaining branches.</span></p> <p> <span lang=\"EN-GB\">After the Central Bankruptcy Court approved the rehabilitation process, the company started negotiating with Japanese firms to form a joint venture in preparation for restarting its business next year. </span></p> <p> <span lang=\"EN-GB\">Sicco Securities is the financial adviser for the restructuring of its Bt700-million debt, which includes converting debt into equity and raising its registered capital to pay back part of the debt. </span></p> <p> <span lang=\"EN-GB\">The company&rsquo;s business plan targets import of 30 cars per month, rising to 50 cars per month in three years, and increasing its branches from two to five by 2014, he added.</span></p> <p> <span lang=\"EN-GB\">SEC Auto&rsquo;s financial crisis reportedly stemmed from internal fraud involving then chairman Sompong Witthayaraksan.</span></p>