News on 20 June

June 20, 2000 Tuesday

HEADLINE: Effective Planner to meet TPI creditors on July 7

Effective Planner Ltd managing director Anthony J Norman said he will meet Thai Petrochemical Industry Plc creditors on July 7 to discuss the ongoing TPI debt restructuring plan.
"The forecast of cashflow generated from operations will be finalised in the next two weeks. On July 7 we will have intensive dialogue with the creditors on how the restructuring TPI should be conducted," he said.
He said he is confidenct the plan will be submitted to the Official Receiver July 28.
Norman said there will be no capital write down under the plan and added that there had never been any plan to write down capital.
He said, however, a number of investors have expressed interest in taking new equity in the company, if it issues new shares.
"I have met with about a dozen investors who have expressed an interest in buying new TPI shares," he said, but declined to confirm or deny reports that 1 bln usd may be raised through a forthcoming share issue.
"Our early review of cashflow from operations is completed but it still too soon to see if there any changes need to be made to the original restructuring agreement based on what we have learned to date.
"Cashflow and capital expenditures last year were not what we expected -- in fact both were higher -- and we need to see how that affects what we are planning to do in terms of cashflow over the next two or three years.
"We have budgeted capital expenditure at 2.00-2.25 pct of cashflow, or 80 mln usd a year, based on the value of current assets. Cashflow will also provide working capital to be used for interest expenses. Our (cashflow) forecast also includes revenue from the disposal of non-core assets, a process which needs to proceed carefully."
Barry Murphy, TPI's new operations manager, said he will proceed with the second phase expansion of TPI's refinery as it will add 150,000 barrels of daily capacity, bringing production up to 215,000 barrels per day.
"Once Phase Two is complete we will shut Phase One temporarily for maintenance and scale production at Phase Two to meet anticipated demand. Phase Two will cost 10 mln usd."
Separately former TPI chief executive Prachai Leopairatana said TPI unit TPI Polene Plc will petition the bankruptcy court June 28 for approval of its separate restructuring plan.