Banpu plans no provision against court judgement
Play
With confidence in winning the appeal against Siva Nganthavee and his associated companies, Banpu Plc announced that it would not set aside provision to cover damages associated with the court case.
"With these reasons, the Company and its subsidiary have no need to set the provision in the financial statements for the damages as stipulated by the judgment," said Somruedee Chaimongol, chief financial officer, in a statement to the Stock Exchange of Thailand today.
The announcement effectively stopped losses in the company's share price. Today, the price was added by Bt8 to Bt400. On Sept 21, upon the Civil Court's Sept 20 ruling that it must pay damage to Siva Ngantavee and group, the stock immediately lost Bt38.
Brokerage report said the provision, of about Bt33 billion, would immediately force Banpu to swing to a net loss this year.
Banpu said that after consultation with legal advisors, the company has been firmly assured that there are both factual and legal grounds to appeal the judgment, and has been advised that the company and its subsidiary will, in no circumstances, be held liable for the damages for information, investment and expenditures, and also in no circumstances, be held liable for the loss of opportunity from the former Hongsa Project of the plaintiffs, which had been earlier terminated by the Lao government.
The board of directors and the management decided to appeal the ruling.
