Nine domestic and international financial institutions, including 4 funds under Asset Plus Fund Management, signed a 3-year loan agreement to EA under the repayment through cash flow from operations under government power purchase agreements (PPA).
Mr. Vasu Klomkliang, Chief Financial Officer (CFO) of EA, said, “The confirmation of loans from these 9 financial institutions and 4 funds from Asset Plus Fund Management affirms that the company still operates and recognizes revenue from normal business operations. This loan will ensure the company has no liquidity problems from short-term loans and Bills of Exchange (B/E) in the next year.”
Regarding the two series of debentures, consisting of EA248A worth 1,500 million baht due on August 15, 2024, and EA249A worth 4,000 million baht due on September 29, 2024, the company will proceed to request a postponement of the redemption dates. It will also increase the interest rate to 5% per annum for both series and provide additional collateral without being considered a default event. The company confirms it will pay the due interest, only requesting a postponement of the principal repayment.
The details of the proposed changes and debenture holders’ meetings are as follows:
EA proposed to postpone the redemption date of EA248A to 31 May 2025 with an additional interest of 1.89% on top of the original 3.11%. Meanwhile, EA249A will be proposed to a new redemption date on 31 May 2025 as well with an additional interest of 1.80% on top of the original 3.20%.
Mr. Vasu Klomkliang added, “For this request to postpone the redemption of both debenture series, debenture holders will receive full repayment within 10 months, which is earlier than the financial institutions and Asset Plus funds that will receive repayment within 3-year loan agreement. As for the company’s approach to repaying these 2-debenture series, besides cash flow from business operations, the company is in the process of negotiating with new strategic partner(s) to strengthen financial stability and increase synergy. This includes selling some assets to an Infrastructure Fund. The company is confident that if everything proceeds according to plan, its performance will return to a growth stage and will be able to repay all loans, including debentures due in the future. This will be a long-term solution for the company and a win-win solution for financial institutions, debenture holders, and the company.”
