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TRANSPORT
NAREERAT WIRIYAPONG
Ongoing political turmoil is unlikely to affect the debt restructuring plan of Bangkok Mass Transit System (BTS), which is ready to proceed after receiving the green light from Thailand's top court.
The Supreme Court endorsed the plan a few weeks ago after some creditors withdrew their complaints against the restructuring, paving the way for new strategic partners to inject fresh capital into the skytrain operator, said Anat Arbhabhirama, the adviser to the BTS board of directors.
Strategic partners will inject US$600 million for the Bangkok Skytrain operator to complete its restructuring involving debts totalling 65 billion baht.
"New investors are in the stage of putting the money into the company," said Mr Anat, but declined to reveal the names of the new partners.
BTS expects to receive approval from the Central Bankruptcy Court to exit the rehabilitation process within this year so that the company can float its shares in the Stock Exchange of Thailand in the first quarter of next year.
The public offering was postponed from October of this year because of the delay in debt restructuring.
Mr Anat brushed aside the impact from political tensions generated over the past week between the government and the People's Alliance for Democracy.
"The political atmosphere has a minor impact on our business operations," he said. "Even though the political situation is not good, people still have to travel and use transport services."
BTS has excess cash from its operations with earning before interest, taxes, depreciation and amortisation (EBITDA) at 60% of revenue, said Mr Anat.
The company, which operates two elevated train routes in central Bangkok, earns between nine million and 10 million baht a day from servicing about 410,000 to 430,000 commuters.
Mr Anat said that ridership on the Skytrain had increased in line with the target of 3-4% growth over last year and is on track to increase to 450,000 a day by year-end.
Over the past eight years, ridership has risen by an average of 10% annually.
BTS targets a daily ridership increase of 40,000 when the extended route of 2.2 kilometres over Thaksin Bridge begins operating in April next year.
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