Kasikornbank, acting as the representative of bondholders, is facing the consequences of a THB5 billion bond default by Thailand’s Stark Corporation, which failed to meet the court-ordered payment deadline.
The Bangkok Civil Court, on April 23, 2024, mandated Stark Corporation Public Company Limited (SET: STARK) to repay its debts to bondholders across four series (STARK239A, STARK249A, STARK245A, STARK255A) totaling THB5 billion within 30 days.
Following the expiration of this deadline, Kasikornbank Public Company Limited (SET: KBANK) disclosed that STARK had not honored its obligations, prompting the bank to pursue legal recourse.
In early 2023, an executive from KBANK had announced that provisions had been allocated for STARK in the first quarter.
Stark Corporation faces allegations of fraudulent activities, including fabricating sales, fictitious account receivables, and falsified tax payments, resulting in damages exceeding 15 billion baht.
