Lenders keep an eye on troubled SSI as it seeks investors

SSI on Wednesday responded to the Stock Exchange of Thailand’s request to improve its financial position in an attempt to forestall delisting by saying it was negotiating with prospective investors that are interested in the company’s newly issued shares.

An extraordinary shareholders’ meeting has approved the capital increase by private placement of up to 16 billion newly issued shares.

SSI is rescheduling principal and interest due on September 30 to December 30.

Earlier, all lenders agreed to reschedule loan payments due on June 30 to September 30.

Kittiya Todhanakasem, first senior executive vice president of Krungthai Bank, one of the Thai creditors besides Siam Commercial Bank and Tisco Financial Group, said the bank in the previous quarters had already made extra provisions as a buffer against unexpected incidents including the SSI case.

KTB might have no need to make additional provisions for SSI, she said.

A source from the lenders said SSI would have to enter debt restructuring after postponing servicing of its debt.

Tisco Financial Group is planning to add to its loan-loss reserves for SSI this quarter, according to analyst reports.

The analysts met executives of Tisco recently and were told that it might review the plan to take additional provisions for SSI after provisioning for SSI in the second quarter.

Tisco has prepared loan-loss reserves of Bt2.1 billion, representing 53 per cent of its exposure to SSI.

According to analysts, total loan-loss reserves of Tisco this year are expected to reach Bt4.2 billion, surpassing the target of Bt3.8 billion.

Oranuch Apisaksirikul, chief of Tisco Financial Group, said the group would provide details about the SSI account at an analysts meeting next Friday.