Ailing industrial estate to sell assets
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Debt, flood cripple Saharattananakorn
Saharattananakorn, the operator of Saha Rattana Nakorn Industrial Estate, the only one among the seven flood-hit industrial parks that is under financial rehabilitation, plans to sell its assets to creditors to reduce its debt burden.
It also expects to take at least a year to restart operations.
Saharattananakorn was put under court protection last year because of its consecutive losses.
Deputy Prime Minister Kittiratt Na-Ranong said last week that the government might consider purchasing the inundated industrial estates which could not continue to operate.
The government plans to set up a fund to help rebuild flood-affected industrial estates.
Prasit Hitanant, managing director of Saharattananakorn, said the company was struggling under debts of Bt2 billion to Bt3 billion.
Its three major creditors are Bangkok Rubber, Bangkok Bank and UOB Thai Bank.
Its revenue mainly came from selling land, accounting for 80 per cent, and the rest from providing infrastructure.
After the flooding eases, the company plans to negotiate with its creditors to sell the assets.
If the plan is successful, 70 per cent of the total value will be repaid to creditors and the company will manage the rest.
The assets are valued at more than Bt1 billion, so the company needs to negotiate with Bangkok Bank for a debt haircut to facilitate the plan.
Under the rehabilitation plan, the company must use only cash, which is a limitation for the company in reconstructing infrastructure after the flood recedes.
The company expects to spend Bt60 million to restore flood-damaged areas. If it fails to raise cash, it might seek financial assistance from lenders, Prasit said.
Kosit Panpiemras, executive chairman of Bangkok Bank, said the bank was ready to meet Saharattananakorn’s requirements to allow the estate to get back on its feet.
“Money is not a problem. We’ve talked with the operator including about refinancing because this project is in the rehabilitation process. We know the operator has no revenue during the flooding,” he said.
