The share price of Italian-Thai Development Public Company Limited (SET: ITD) jumped nearly 10% after the opening bell on Thursday as the market relaxes concerns on debentures problem.
The company narrowly avoided a cross default after its debentureholders approved the extension of the maturity dates of the debentures.
Debentureholders approved yesterday to extend maturity dates for series 1) ITD242A, 2) ITD24DA, 3) ITD24DB, 4) ITD266A, while ITD254A series was unable to vote due to a lack of directors’ attendance.
Prior to yesterday’s meeting, 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.
The extension relieved tension in the market as a number of companies in the past year have been having a debenture crisis as they are unable to fulfill their obligations at the maturity date.
Share prices of ITD rose as much as 9.7% to THB0.79 in the morning session on Thursday.
