The progress of debt collection from the related companies

กลับ
(- Translation -) BTS. 2258/2010 August 18, 2010 Subject : The progress of debt collection from the related companies To : President The Stock Exchange of Thailand BTS Group Holdings Public Company Limited (the "Company") had provided loans to its related companies from years 1990 to 1996, having the outstanding repayment amount of Baht 5,679 million. The Company has already made allowance for the doubtful debts in the amount of Baht 5,391 million. Due to the fact that the Company sold its right of claim against one of the debtors to other person, and such other person has already received the debt repayment from such debtor. At present, the outstanding debt is decreased to Baht 5,000 million and the Company has already made allowance for the doubtful debts in the amount of Baht 5,000 million. In this regard, the Company has continuously followed up the payment of debts. The progresses on such are as follows: 1. During January 2007, the Company issued notices demanding the repayment of loans from some debtors in the amount of Baht 2,983 million and issued the second notices after a thirty-day period was due. Notwithstanding, the debts still have not been serviced. In addition, there is a debtor who has an outstanding debt in the amount of Baht 2,647 million. Considering its financial statements, the Company viewed that this debtor has no ability to service debts but still has a chance to enter into the business rehabilitation process. As a result, the Company has taken the following process. - On March 23, 2007, filed a petition to the Central Bankruptcy Court for the business rehabilitation of such debtor; however, the Central Bankruptcy Court dismissed the petition on October 15, 2007. - On November 23, 2007, two creditors filed a petition to the Court for the business rehabilitation of the said debtor and the Central Bankruptcy Court had ordered to accept the petition for business rehabilitation and there was an appointment for the preliminary petition examination on March 31, 2008. On such date, one of the creditors filed a petition to the Court requesting the review and judgment on the legal issue as regard to the repetition of the proceedings, The Court reviewed and dismissed the petition for business rehabilitation on April 30, 2008. - On June 17, 2008, the debtor filed a petition for its own business rehabilitation; however, the Central Bankruptcy Court dismissed the petition for business rehabilitation. - On July 3, 2008, the debtor filed another petition for its own business rehabilitation. Later, the debtor withdrew its petition on September 24, 2008 and the Central Bankruptcy Court permitted such withdrawal. - On October 17, 2008 the debtor has again filed the petition for its own business rehabilitation; however, the Central Bankruptcy Court dismissed the petition for its business rehabilitation on December 9,2008. - On February 26, 2009, the debtor has once again filed the petition for its business rehabilitation; however, the Central Bankruptcy Court dismissed the petition for its business rehabilitation on August 5, 2009. - Due to the fact that a financial institution creditor filed a bankruptcy case against the debtor in January 2006, and another creditor also filed a bankruptcy case against the said debtor in October 2007, the Central Bankruptcy Court ordered absolute receivership against the debtor on August 6, 2009. At present, the case is under the proceeding of the Official Receiver. The Company has filed the application for debt repayment with the Official Receiver and the first meeting of creditors held on July 1, 2010 resolved to apply to the court for the bankruptcy order. 2. The Company has other debtors from borrowings in the amount of Baht 2,017 million. The Company followed up the debts with two debtors who have the total debts of Baht 2,013 million. After the Company has taken the legal proceedings against these debtors concurrently with the negotiation for debt restructuring for a period of time, the Company is now considering other type of proceedings to be taken against these debtors, e.g. filing bankruptcy case concurrently with other proceedings. Please be informed accordingly. Yours sincerely, BTS Group Holdings Public Company Limited -Mr. Kavin Kanjanapas and Mr.Rangsin Kritalug- Directors