(Bloomberg) -- Energy Absolute Pcl, the Thai renewable energy company that has slumped in value amid a fraud probe, named a new chief executive officer ahead of planned bondholders meetings that will ask for more time to repay debt.
Meetings with holders of 5.5 billion baht ($155 million) of bonds maturing this year will be held from next week, the company said in filings as it named Chatrapon Sripratum as CEO. Founder Somphote Ahunai resigned from the top position last month after the Securities and Exchange Commission said it was probing him and other executives for possible fraud. Somphote has denied wrongdoing.
Thai authorities are seeking to contain fallout from Energy Absolute, which has operations encompassing everything from power generation to the assembly of trains, ferries and buses. The company’s efforts to raise cash to repay maturing debt hit a hurdle when the market regulator sought more details and an industry group banned new investments in its securities. With total debt of 64 billion baht, Energy Absolute has seen its shares sink more than 90% this year.
“It’s unavoidable that EA has to extend their bonds maturity in order to secure enough funding or cash flow,” Poon Panichpibool, a strategist at Krung Thai Bank in Bangkok, wrote in an email response to questions from Bloomberg News, referring to the company with its initials. “Some asset management firms that have EA bonds in their funds will try to negotiate to make sure that their clients will eventually get some or all money back,” he said.
In a meeting scheduled for next week, Energy Absolute will ask for an extension of 10 months and 15 days to holders of bonds worth 1.5 billion baht due on Aug. 15, and offer to raise the coupon to 5% from 3.11%. In a separate meeting, it will ask investors to allow about nine months to repay 4 billion baht of green bonds due Sept. 29, offering them a coupon rate of 5% during the period from the current 3.2%.
(Recasts with quote and details on debt.)
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