TOT rejects TT&T debt rehab plan
THE BOARD OF TOT recently declined to accept TT&T's rehabilitation plan involving TOT, which requires the state enterprise to give TT&T a huge haircut on its debt, according to a TOT source.
TOT chairman Surapong Suwanaadth said the board recently met to review TT&T’s rehab plan, which was proposed to TOT by the plan administrator, PCL Planner.
While declining to reveal the outcome of the board meeting, he said the result would not have any impact on TT&T’s subscribers.
The TOT source said the TOT board declined to accept this proposed rehab plan.
TT&T’s debt owed to TOT is in three tranches: Bt318.31 million, Bt7.15 billion and Bt1.31 billion.
As part of the planner’s proposal, TOT would receive Bt750 million in cash and 2 billion TT&T shares as debt payment. TOT has to cut some tranches, including Bt4.5 billion of the Bt7.15 billion tranche.
The planner also proposed to give back this huge haircut to TOT if it gets a favourable ruling from the Central Administrative Court in its dispute with TOT in the network access charge case.
The TOT source said the board could not grant the request for a haircut. It also was concerned that TOT would be burdened by tax payable on the proposed conversion of debt to equity.
TOT is one of TT&T’s creditors. It also granted TT&T’s 25-year telephone concession to operate 1.5 million lines outside Greater Bangkok. It has about 490,000 subscribers.
TT&T received the Central Bankruptcy Court’s approval in 2008 to enter rehabilitation. The court approved its rehab plan in December 2010 involving debt of Bt28.6 billion.
