BANKRUPTCY DISPUTE: Thai Fishery opposes receivership order

BANGKOK POST

September 19, 2000

LENGTH: 269 words

HEADLINE: BANKRUPTCY DISPUTE: Thai Fishery opposes receivership order

BODY:

Thai Fishery Plc and two of its executives from the Masyawanich family yesterday appealed against a Central Bankruptcy Court receivership order granted following a lawsuit filed by the Export Import Bank of Thailand.

The Exim Bank had sought to recover $10 million from delisted Thai Fishery, Thai Fishery (Songkla) Co, Dr Marut Masyawanich and Manit Masyawanich. The funds were revolving loans for export and loans for discounting promissory notes for export. However, the debtors defaulted on repayments.

After reviewing testimony from both sides, the court on Aug 18 ordered that all four debtors be placed in receivership, with receivership officers to manage the debtors' assets.

Thai Fishery had asked the court, when determining whether the value of the firm's assets was much lower than its liabilities, to note that Thai Fishery had filed suit against the bank in a civil court, citing right to protection against currency devaluation. As well, the company claimed a right to claim US$25 million from James Libar in accordance with a ruling given by a court in Ontario. The company also claimed a right to ask the Customs Department for tax compensation of 216 million baht and rebates totalling 11 million baht from the Revenue Department.

It had asked its lawyer to file a suit against the Canadian Imperial Bank of Commerce for claims totalling 900 million baht.

However, the court decided that as the rights claimed by the company were without concrete supporting evidence, the debtors' assets were well below their liabilities and ordered that they be placed in receivership.

LANGUAGE: English

LOAD-DATE: September 19, 2000