Four financial creditors of Phelps Dodge International (Thailand) (PDITL), a subsidiary of the scandal-plagued, SET-listed Stark Corporation, have jointly filed for the rehabilitation of Stark's cable-making unit to the Central Bankruptcy Court, according to the company's filing to the Stock Exchange of Thailand (SET).
Stark informed the SET that Kasikornbank, Siam Commercial Bank and the Thai units of United Overseas Bank and the Industrial and Commercial Bank of China, as the creditors of PDITL, have jointly filed for the company's rehabilitation with the bankruptcy court.
"On Oct 23 PDITL received a copy of the Central Bankruptcy Court's order dated Oct 17 that prescribed an order to accept the rehabilitation petition of PDITL and scheduled the date for the hearing on the consideration of the rehabilitation for Dec 18," Stark's director Attapol Watjarapairoj said in the statement.
PDITL proposed the court appoint EY Corporate Advisory Services (EY) to be the rehabilitation planner.
If the court appoints EY as the planner, it will have the authority and duty to continue to manage the business and assets of PDITL according to the applicable laws, he said.
"The rehabilitation process will enable PDITL to reach its objectives more effectively step by step, as supported by the laws," said Mr Attapol.
He said during the rehabilitation process, PDITL can still conduct normal business operations, which will be carried out concurrently with a reorganisation to improve its business process, internal control and operational efficiency.
In a related development, the SET said an "SP" (suspension) sign was posted on Stark's securities from Oct 25 until Stark appoints audit committee members as required by SET regulations.
The bourse has posted an "NP" (notice pending) sign since July 25 on Stark's shares because the company was unable to appoint the audit committee members by the specified deadline, as required by the SET.
"If Stark is still unable to appoint the audit committee members within two years after the SP sign has been posted, by Oct 24, 2025, the SET may consider de-listing Stark's securities," the bourse said in a statement on Wednesday.