Italian-Thai Development (ITD) Plc, currently facing financial distress, is set to receive an infusion of funds from its major creditors. The provision of fresh capital is aimed at bolstering the company’s operations without necessitating any rehabilitation plan.
Bangkok Bank (BBL) President Chartsiri Sophonpanich, who is also a key ITD creditor, underlined the strong long-term business prospects of ITD, despite the company currently grappling with liquidity issues. Chartsiri confirmed that BBL, along with other significant creditors, is ready to offer financial support to ITD.
“BBL is committed to assisting the customer by providing supplementary liquidity, working capital and facilitating debt restructuring. In addition, every major creditor has assisted ITD with its debt restructuring efforts, so ITD does not need to prepare any rehabilitation plans.”
BBL, recognised as the country’s largest lender by total assets and a primary creditor to ITD, chose not to reveal the exact sum of loans it has extended to the beleaguered contractor. The bank also did not disclose the identity of the largest lender among all the primary creditors.
Apart from BBL, other major creditors of ITD include Kasikornbank, Krungthai Bank, and Siam Commercial Bank.
Last week, ITD communicated to the Stock Exchange of Thailand (SET) that it has been in discussions with primary creditors to secure financial backing for both short-term and long-term needs to resolve its liquidity challenges. It has received partial support so far and expects to finalise loan agreements to ensure the continuity of its operations.
Company debt
Additionally, ITD’s creditors have initially agreed to waive the company’s debt-to-equity ratio requirements, after the company failed to uphold the financial ratio condition.
However, ITD is implementing modifications to its operational and control systems with an objective to cut costs and improve performance. This step is crucial to ensure the company’s ability to compete effectively and generate profits from its operations.
Referring to the Dawei Special Economic Zone (DSEZ) full-phase investment project in Myanmar, ITD reaffirmed to all stakeholders, as per its statement to the SET, that its rights to reimbursement for previous investments remain protected under the Tripartite Memorandum.
On the situation in Myanmar, Chartsiri noted that the operations at BBL’s Yangon branch are functioning normally despite the ongoing civil unrest, with contingency plans ready to ensure service continuity. Catering exclusively to corporate clients, BBL’s Yangon branch serves local, Thai, and international companies.
Chartsiri added that large Thai corporate entities continue to exhibit a positive trend in regional business expansion, aligning with the growth potential of ASEAN, reported Bangkok Post.
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