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TRANSPORT
NAREERAT WIRIYAPONG
Bangkok Mass Transit System (BTSC) yesterday completed a debt restructuring that has taken almost 10 years, according to chief executive Keeree Kanjanapas.
The Central Bankruptcy Court approved the Skytrain operator's request to exit court-supervised rehabilitation.
With the restructuring of 67.75 billion baht in debt, Mr Keeree becomes the major shareholder of BTSC with 53.65% held by his wholly owned firm, Siam Rail Transport and Infrastructure Limited.
The second-largest shareholder is a new strategic investor, a consortium between UK-based Ashmore Investment Management Ltd and Singapore-based Noonbays Asset Management, with 38.5%. The holding of Hong Kong-based New World Group has been diluted to 2.67% from 20% prior to restructuring.
The new consortium and Siam Rail together have committed 12 billion baht to partially clear debts. Creditors will convert debt worth 16.34 billion to equity.
Under the restructuring, the company had reduced its liabilities to 10 billion baht from 67.7 billion, Mr Keeree said. adding that the remaining debt would be gradually repaid over eight years. Its creditors are led by Deutsche Bank.
The company's registered capital was now 15.89 billion baht, Mr Keeree said.
William Glone, chief financial officer of the consortium, voiced his confidence in the future of the business.
"We believe in the strength and commitment of the two funds even now that the world is in the middle of financial crisis," he said. "We are not hesitant ... to inject the money into BTS to complete the restructuring."
BTSC has postponed several attempts to list on the Stock Exchange of Thailand but Mr Keeree said the company now expected to be ready to file an initial public offering plan within this year.
He also said the new partners hoped to begin investing next year in a BTS extension in Bangkok and in rail systems in two other countries in Asia, which he declined to identify.
The company also intends to invest in property projects along the BTS lines through the new company, in which BTS will hold a maximum of 50% of the registered capital of five billion baht.
Mr Keeree expressed confidence that the company could secure funds despite the poor financial climate, adding that it had 7.6 billion baht in cash on hand.
For its fiscal year ending in March 2009, the company expects net profit to reach 22 billion baht.
"With our net cash [after interest] from operations of five million baht daily, we see nothing to worry about, either in the extension of the BTS in Bangkok or overseas," Mr Keeree said.
Mr Glone added: "All [new investors] are ready to invest in the new projects."
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