9 May

May 9, 2000, Tuesday

LENGTH: 316 words

HEADLINE: Robinson talks go on

BYLINE: The Nation

BODY:
THE international accounting and financial restructuring firm Ferrier Hodgson has been appointed to represent the creditors in talks with Robinson Planner Ltd., the planning company established by Robinson Department Store Plc to restructure its $US463 million (Bt17.5 billion) in debt.

Robinson Planner was jointly created by Robinson Department Store and Ferrier Hodgson. Central Retail Corporation is Robinson Department Store's largest shareholder.

The bankruptcy court last week approved a petition to allow Robinson Planner to prepare a rehabilitation plan for creditors' approval.

Warwick Kneale, a director at Australia-based Ferrier Hodgson (Thailand), said negotiations have been consistently amicable. The petition to appoint Robinson Planner was supported by all parties, he said.

"We are very pleased with this appointment and are confident that we can work together with all relevant parties to prepare a plan that is the best interests of the company's stakeholders, including financial creditors, management, employees, suppliers, customers and shareholders," he said.

Robinson Planner has already agreed to the draft term sheet that forms the basis of the eventual restructuring plan. The final plan must be submitted to the court within five months.

"We are confident that this rehabilitation process is a pragmatic step towards strengthening our company by improving its financial status and operations to ensure its competitive edge in the future," Kanok Wongtrangan, CEO of Robinson Department, said.

Robinson Department Store has been negotiating with its creditors, mostly foreign banks, for the past 18 months. The delays in reaching an agreement on the restructuring of Robinson Group's US$463 million in debt have been attributed to the complexity of the transaction and the diverse number, nationality and classification of the debts.