Shares of Energy Absolute (EA) sank yesterday after the listed renewable energy company said it would seek the approval of its bondholders to delay payment on two bond tranches worth 5.5 billion baht, signalling that the company's financial woes, caused by the alleged fraud involving two executives, are getting worse.
In a filing to the Stock Exchange of Thailand (SET), director Wutthilerd Chiannilkulchai said EA would ask the bondholders at a meeting on Aug 9 to approve an extension of the maturity date of the EA248A bond, worth 1.5 billion baht, for another 10 months and 15 days. The company will propose paying a 5% coupon on the debt, from 3.11%, for the delay.
The company will also ask bondholders to approve the nine-month delay of its green bond EA249A, worth 4 billion baht and due Sept 29. It will also raise the coupon to 5%, increasing the interest rate by 1.8% per annum from the original fixed rate of 3.2%, Mr Wutthilerd added.
EA stock tumbled by 2% to 3.74 baht apiece by midday yesterday. The shares have slumped more than 90% this year on concerns of further blows to the business after the Securities and Exchange Commission last month said it was investigating founder and former chief executive Somphote Ahunai and other executives for possible fraud.
Mr Somphote and his deputy Amorn Sapthaweeku have denied wrongdoing and resigned from their posts. The Association of Investment Management Companies has banned new investments in the firm, which also had its credit rating cut, and it has already delayed repayment on two bills of exchange.
Mr Wutthilerd also informed the SET that the company has appointed Chatrapon Sripratum as its new chief executive, succeeding Somchainuk Engtrakul, who had been named acting chief executive following Mr Somphote's resignation, effective as of Aug 1 this year. Mr Somchainuk continues to serve as chairman of the board of directors.
The board meeting on Thursday also appointed Vasu Klomkliang as the new chief financial officer. In addition, Supant Mongkolsuthree, former chairman of the Federation of the Thai Industries (FTI), was named as a new director, replacing Chachawan Jiaravanon, who resigned from the post, also effective as of Aug 1.