ECONOMY - Stability provides recovery platform FISCAL - Public debt looms large on horizon MARKET - Cinderella misses the recovery ball Liquidator's task nearly over Low interest rates hasten restructuring BANKING - E-girls symbolise focus for the future INVESTMENT - More projects in the pipeline INSURANCE - Foreign entrants spur innovation EXPORT - Growth not shared evenly AGRICULTURE - Promises, promises Minister faces an uphill task INDUSTRY - New lease on life for manufacturing AUTOMOBILE - Back on track after the slump E-COMMERCE - Internet slow to make inroads TELECOMS - Gearing up for privatisation Turtle phone agency moves slowly TOURISM - Sustaining the momentum PROPERTY - Buyers' market for the players TRANSPORT - New airport still earthbound ELECTRICITY - Questions over pace of reform OIL AND GAS - Steamed up over payments for gas Back to Index page Back to Bangkok Post

MARKETS Liquidator's task nearly over Work for the Financial Sector Restructuring Authority was nearing the end as the second quarter closed. The agency, set up in 1997 to oversee the liquidation of the 56 closed finance companies, spent much of the first half reviewing claims by creditors in preparation to settle accounts and return funds raised from the asset auctions held over the previous two years. Assets worth about 114 billion baht remain in the hands of the FRA, mostly loans which could not be auctioned earlier due to documentation or legal problems. The authority says it plans to continue to auction the remaining core assets, such as vehicles, listed stocks and properties for the next few months. Afterwards, assets will fall into the hands of creditors, who will have to pursue their claims in court. As of June, the FRA said it had completed reviewing claims for 49 out of the 56 finance companies, or 87.5% of the 45,099 creditors. Overall, claims totalling 630 billion baht have been screened, or 68% of the total 919.4 billion in claims originally filed with the FRA. The FRA has raised some 186.5 billion baht from its asset auctions to date, or 27% of the book value of the assets. Another 66.1 billion baht has been raised from restructuring efforts by the authority. Total funds awaiting return to creditors, including interest, stood at around 260.5 billion baht in the second quarter. Some bidders at FRA auctions get into the spirit of things. The repayment process has been delayed pending a ruling by the Council of State on the FRA's authority to settle claims. Assuming a favourable ruling, FRA officials say the next step would be to formally notify creditors about their claims accepted by the authority, which will be used as a base for deciding their share once proceeds are distributed. Creditors can file a protest against the claims rulings with the FRA board. Among the assets which will be split up are cash raised from the auctions, promissory notes from the state-owned Asset Management Corporation, and shares in funds set up to oversee profit and cashflow sharing deals between the FRA and several auction winners. The final duty of the FRA will be to oversee the closure of the 56 finance companies. The authority has already moved to slash expenses and downsize staff, with only 1,453 employees remaining from the firms compared with 7,363 two years ago.

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