February 2001
TPI pleads capital dearth in restructuring
Thai Petrochemical Industry is Thailand’s biggest restructuring headache. And if it is going to pull itself out of trouble, its managers claim that it needs access to large amounts of working capital. But that is not forthcoming.
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TPI needs the stevedores to move more oil
drums
in Bangkok |
Mired in debt, Thai Petrochemical Industry is Thailand's
biggest restructuring headache. Central to the problem is a
perceived difference over strategy between TPI's management and
recovery practitioner Ferrier Hodgson. If TPI is to pull itself
clear of trouble, its managers claim, it needs access to large
amounts of working capital that are not currently forthcoming.
TPI is Thailand's largest defaulting corporate debtor. It owes
$2.9 billion in principal and $800 million in accrued interest, in
eight currencies, to some 150 creditors from 40 countries.
Lenders have spent a year thrashing out a restructuring plan, amid
objections from TPI management and protests from refinery workers
and working with a court system deemed "too debtor friendly" by
many. Now the company is asking for another $200 million to $250
million in working capital to bring its downstream petrochemicals
production up to full capacity. "If...
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