Prachai wins Supreme Court's support
The Supreme Court today overruled the Central Bankruptcy Court's decision over Prachai Leophairatana's case against creditors of Thai Petrochemical Industry Plc.
The court ruled that the Central Bankruptcy Court will have to take Prachai's case into the trial process.
Prachai and four associates filed a petition to the Central Bankruptcy Court, calling for damage compensation of Bt190.38 billion from eight defendants which include Bangkok Bank, Export-Import Bank of the US and Germany's reconstruction credit institute KfW. The compensation is for damage incurring to TPI, which was majority owned by the Leophairatana family. However, the court turned down the petition, saying that they were not directly impacted by the damage.
Under the Supreme Court's order, the Central Bankruptcy Court will have to open the case, which went back to as far as 2009. TPI witnessed a massive increase in debt following the baht devaluation in 1997 and it later fell under creditors' control.
