Nation Multimedia Group Plc (NMG) defaulted on 100 million baht worth of bills of exchange that came to due yesterday, making it the first technical defaulter on B/Es in Thailand.
Another seven series of NMG's B/Es were offered at a deeper discount after the default, said Ariya Tiranaprakij, executive vice-president of Thai Bond Market Association.
Meanwhile, Tris Rating downgraded the company rating of NMG to D and removed the credit alert after the company's failure to repay or roll over the B/Es due.
"Tris Rating will reassess NMG's credit rating if the company is able to fulfil its debt repayment obligations in accordance with the borrowing agreements or if the lenders agree to amend the terms and conditions of NMG's financial obligations," the rating agency said in a statement.
The technical default of the operator of two digital TV channels and publisher of The Nation and Krungthep Turakij newspapers comes after the Securities and Exchange Commission (SEC) banned eight of NMG's 10 board members for failure to perform their legal duties at the company's 2015 annual general shareholders' meeting.
NMG has said the ban disrupted the company's financial transactions.
Tris Rating on Monday downgraded NMG's credit rating to BB+ from BBB and placed the company's rating on credit alert with negative implications, saying that NMG's exposure to operational and legal risk may prevent it from meeting upcoming financial obligations after the SEC banned the board members.
Earlier this month, Tris Rating axed NMG's credit rating to BBB from BBB+ on Oct 6 to reflect the company's weakened operating performance and financial profile from intense competition in the digital television industry and secular decline in publishing.
The SEC on Tuesday said that Asset Plus Fund Management invested in NMG's defaulted B/Es and the mutual fund assured it has planned to handle any impact on its unit holders.
Apart from the 100 million baht in B/Es, another 450 million worth of B/Es issued by NMG will come due between Nov 17 and March of next year.