TRIS Rating Co., Ltd. announces today that it will release the status of the company rating of TPI Polene PLC (TPIPL) that reflects the litigation and refinancing risks after the Court’s ruling on the loan extension is released.
On 3 December 2007, the Criminal Court ruled that TPIPL and its Chief Executive Officer,
Mr. Prachai Leophairatana, were guilty of violating the Securities and Exchange Act, B.E. 2535. TPIPL was fined Bt6.9 billion and Mr. Prachai was sentenced to a 3-year jail that, according to the court, will not be suspended.
TRIS Rating said that though the court’s ruling will not have an immediate impact on the operation of the company, since the company will file an appeal against the judgment of the Criminal Court to higher courts, this litigation risk may affect the company’s creditability.
TRIS Rating placed a “CreditAlert” with “Negative” implication for TPIPL’s company rating on 27 July 2007 due to uncertainty regarding its ability to refinance its debts at the end of 2007. The refinancing loan amount at the end of September 2007 was around Bt8,440 million. Currently, the company is in the process of negotiating with existing creditors to extend its repayment schedule for an additional year. The court’s order regarding the loan repayment extension is expected on 11 December 2007. TRIS Rating will publicly release the rating that reflects the litigation and refinancing risks once the court has ruled.
Currently, TPIPL was assigned the “BBB” company rating by TRIS Rating. -- End
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
On 3 December 2007, the Criminal Court ruled that TPIPL and its Chief Executive Officer,
Mr. Prachai Leophairatana, were guilty of violating the Securities and Exchange Act, B.E. 2535. TPIPL was fined Bt6.9 billion and Mr. Prachai was sentenced to a 3-year jail that, according to the court, will not be suspended.
TRIS Rating said that though the court’s ruling will not have an immediate impact on the operation of the company, since the company will file an appeal against the judgment of the Criminal Court to higher courts, this litigation risk may affect the company’s creditability.
TRIS Rating placed a “CreditAlert” with “Negative” implication for TPIPL’s company rating on 27 July 2007 due to uncertainty regarding its ability to refinance its debts at the end of 2007. The refinancing loan amount at the end of September 2007 was around Bt8,440 million. Currently, the company is in the process of negotiating with existing creditors to extend its repayment schedule for an additional year. The court’s order regarding the loan repayment extension is expected on 11 December 2007. TRIS Rating will publicly release the rating that reflects the litigation and refinancing risks once the court has ruled.
Currently, TPIPL was assigned the “BBB” company rating by TRIS Rating. -- End
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.