Italian-Thai Development Public Company Limited (SET: ITD) narrowly avoided a cross default after its debentureholders approved the extension of the maturity dates of the debentures.
Prior to the meeting of debentureholders, ITD stated that it was seeking approvals to extend the maturity date due to various factors that pressure the company’s operation. ITD’s projects are under the process of construction and transfer, while there are external factors such as war in the Middle East and a rise in material costs that hinders its operation and performance.
There are five series of debentures that ITD requested for extension, including 1) ITD242A, 2) ITD24DA, 3) ITD24DB, 4) ITD254A and 5) ITD266A for a total amount of 14,455 million in principle.
The source from the meeting noted that ITD254A was unable to vote due to a lack of directors’ attendance.
Moreover, debentureholders also approved the waiving the debt-to-equity ratio (D/E Ratio), which was stipulated in the Terms of Rights, effective from the end of the fiscal year of 2023 until the end of the fiscal year of 2025, and allowing the issuer to enter any negotiations or contracts with creditors for debt restructuring without being considered as a cause of default under the Terms of Rights.
