Siamnuwat postpones debentures debt payment
Local high-rise property developer Siamnuwat Co Ltd announced yesterday (January 9) that it would postpone the payment of its outstanding debentures debt due this year.
The company said that it was facing financial difficulties due to the Covid-19 pandemic and the global economic slowdown.
Siamnuwat Co Ltd has issued three batches of debentures totalling 520 million baht due to mature this year. The company said that it would postpone the payment of this debt by one year, to next year (2025).
The company said that it would use the additional time to restructure its finances and improve its cash flow. Siamnuwat also said that it was in talks with its debentures holders to reach a mutually agreeable solution.
The postponement of Siamnuwat's bond debt is a sign of the challenges facing the Thai construction industry, which was hit hard by the pandemic and the reduction in government spending on infrastructure projects.
The global economic slowdown is also a factor, with the company admitting that it has been seeing a decline in demand for its construction services.
It is not the only Thai construction company facing financial difficulties. Several other firms in the industry have also announced that they are restructuring their finances or seeking bankruptcy protection.
It remains to be seen whether Siamnuwat will be able to successfully restructure its finances and avoid bankruptcy. The company's financial situation will be closely watched by the Thai government and the construction industry.
Siamnuwat Co Ltd was established in 2006 with a registered capital of 300 million baht.
