The situation of Energy Absolute Public Company Limited (SET: EA) is getting worse as the company recently announced a postponement of redemption date of its two debentures worth a total of THB700 million.
The company is trying to regain investors’ confidence after experiencing a rapid decline following allegations of fraud against two key executives involved in the questionable procurement of equipment from foreign sources.
Following the allegation, the share price of EA dropped 61.5% last week and another 28% in the first trading session of this week. EA is now down 92% this year.
The announcement came Tuesday as the company postponed the redemption due date of its two debentures that one of them matured on the same day of the announcement and another one is due next week.
The redemption date of both debentures will be postponed to August 9, 2024. The company will pay a 7% interest rate starting from the original redemption date to compensate for the delay.
EA is struggling to refinance its existing debentures after Tris Rating downgraded EA’s rating from BBB+ (negative) to BB+ (negative). The company announced a cancellation of its new issuing debentures that were originally expecting to open for subscription this week.
The inability to pay its obligations not only impacted EA but also the bond market as a whole after several incidents in the past that caused concerns in the market, including All Inspire, Italian-Thai Development and Stark Corporation.
