ITD faces mounting pressure as projects stall, debentures extended and credit cut

Italian-Thai Development Public Company Limited (ITD) is facing its heaviest pressure in years, following a string of serious incidents on major construction projects, alongside a large debenture debt burden, an operating recovery that has yet to prove sustainable, and credit risks reflected in rating downgrades. The company’s financial position and market confidence are now being closely watched by both the capital market and regulators.

On January 14, 2026, a construction crane accident occurred on the Thai-China high-speed rail project in Sikhio district, Nakhon Ratchasima, when a crane lifting a concrete segment dropped it onto a train, resulting in numerous deaths and injuries.

A separate incident followed, in which a concrete beam and a crane—components of the Motorway No. 82 construction project—collapsed onto Rama II Road, crushing vehicles and causing fatalities. ITD is the main contractor on that project.

Contracts not cancelled, but confidence questioned

After the incidents, reports circulated that Prime Minister Anutin Charnvirakul had ordered the cancellation of both project contracts. However, ITD later clarified that both contracts remain in force, and that the company continues to perform its obligations under them.

Although the contracts have not been cancelled, the incidents have damaged ITD’s image at a time when it is already under financial strain, prompting the market to reassess the company’s risk profile more broadly—covering operations, safety management, and its ability to deliver large-scale projects.

Five debenture series worth THB14.46bn set for extension

Amid the pressure, ITD is preparing to convene meetings of bondholders for five debenture series with a combined value of about THB 14,455 million, seeking approval to extend maturities by three years from the original due dates that fall in 2026. The company is also proposing instalment-based principal repayments and a coupon step-up of 0.25ข0.50% per year as compensation during the extension period.

The five debenture series are:

• ITD2424: THB 2,000 million, due February 15, 2026
• ITD24DA: THB 2,455 million, due December 4, 2026
• ITD254A: THB 6,000 million, due April 29, 2027
• ITD266A: THB 2,785 million, due June 2, 2028
• ITD24DB: THB 1,215 million, due December 4, 2026

All five were offered only to institutional investors and high-net-worth investors (II/HNW). They currently carry the RS marker (undergoing debt restructuring) and the IC marker (information or events that may materially affect the issuer), and remain under close trading supervision.

SEC urges bondholders to weigh terms carefully

Thailand’s Securities and Exchange Commission (SEC) has reiterated that bondholders in all five ITD series should study the information and amended terms in full before voting—particularly the impact of maturity extensions, any relaxation of bondholder rights, and the revised principal repayment structure.

This bondholder meeting is widely seen as pivotal for ITD’s debt-management direction. If approval is not secured, it could affect the company’s debt-servicing capacity and financial stability in the period ahead.

Ratings cut; recovery still not structurally secure

TRIS Rating has downgraded ITD’s corporate credit rating to “B”, and its debenture rating to “B-”, while maintaining a “negative” outlook. The move reflects structural risks from accumulated losses, high leverage, and uncertainty over future cash flows.

While ITD’s performance in the first nine months of 2025 showed some improvement:

• Total revenue: THB 45,871.76 million, down 14.77%
• Net profit: THB 7,393.75 million, recovering from a loss a year earlier
• Cash and cash equivalents: increased to THB 4,978.01 million
• Total liabilities: declined to THB 82,020.35 million

A review of results over the past three years, however, indicates the company has remained loss-making overall, with substantial accumulated profit/loss balances. This suggests the recovery has not yet been sustainable, and has been driven partly by special items and asset sales rather than core operating income.

Overall, ITD’s current situation reflects multiple pressures occurring at once: major project accidents, a large debenture maturity extension request, credit downgrades, and operating results that have improved in part but remain structurally fragile.

For investors and bondholders, the key issues to watch closely are the outcome of the bondholder meetings, liquidity management in the next phase, progress on new investment projects, and the company’s approach to rebuilding confidence among contract counterparties and the capital market—factors that will significantly shape ITD’s trajectory from here.