Major creditors support Italian-Thai Development
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Major creditors support Italian-Thai Development

Major creditors have agreed to infuse fresh liquidity into cash-strapped Italian-Thai Development (ITD) Plc, to support the company's business operations without requiring a rehabilitation plan.

Chartsiri Sophonpanich, president of Bangkok Bank (BBL) and a major ITD creditor, emphasised ITD's robust long-term business potential despite encountering short-term liquidity challenges.

BBL, alongside other major creditors, stands prepared to extend financial assistance to ITD, he said.

"BBL is committed to assisting the customer by providing supplementary liquidity, working capital and facilitating debt restructuring. In addition, every major creditor has assisted ITD with its debt restructuring efforts, so ITD does not need to prepare any rehabilitation plans," said Mr Chartsiri after a bank shareholders meeting last Thursday.

BBL, the country's largest lender by total assets and ITD's major creditor, refrained from disclosing the exact amount of loans extended to the cash-strapped contractor and did not confirm who its largest lender was among the major creditors.

Besides BBL, major ITD creditors include Kasikornbank, Krungthai Bank, and Siam Commercial Bank.

Last week, ITD informed the Stock Exchange of Thailand (SET) that the company had been negotiating with major creditors to secure both short-term and long-term financial backing to address its liquidity problems.

Partial support has been received, with expectations of finalising loan agreements to support the company's uninterrupted operations.

Moreover, creditors have initially agreed to waive ITD's debt-to-equity ratio requirements, following the company's inability to maintain the financial ratio condition.

However, ITD is implementing changes to its operational and control systems aimed at reducing expenses and enhancing performance, ensuring the company's ability to compete effectively and generate profits from its operations.

Regarding the Dawei Special Economic Zone (DSEZ) full-phase investment project in Myanmar, ITD reassured all of the stakeholders, according to its statement to the SET, that its reimbursement rights for prior investments remain safeguarded under the Tripartite Memorandum.

Addressing the situation in Myanmar, Mr Chartsiri said operations were normal at BBL's Yangon branch despite ongoing civil unrest, with contingency plans in place to ensure continuity of services.

BBL's Yangon branch caters exclusively to corporate clients, including local, Thai and international companies.

Mr Chartsiri said large Thai corporate entities still show a positive trajectory in regional business expansion, aligning with Asean's growth potential.

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