The company said in a filing with the Stock Exchange of Thailand yesterday that it was negotiating with four financial institutions to which the cooking-gas manufacturer owes Bt1.25 billion.

Of the total, Bt831 million is in bills of exchange and the remainder a letter of guarantee. However, Picnic did not provide the names of the creditors.

Recently, the embattled firm said it had been able to sell only 136,585 out of 1.48 billion newly issued shares to its existing shareholders. Proceeds from the share allocation will be used to service its debts.

The company added that the leftover shares would be offered to specific investors through private placement, and it would earmark shares to creditors under a debt-to-equity swap.

The company also reported progress of payment of accounts receivable at its related companies.

Picnic has assigned legal counsellors to follow up the payments of 18 gas-filling plants with outstanding debts of Bt714 million.

The company said it had reached a debt-restructuring agreement with JJ Land Development to repay Bt20 million every three months, starting from July 30.