TPI despairs of common ground with Prachai
Thai Petrochemical Industry Plc's new management admitted yesterday that there was no way to come to terms with TPI's founder and former chief executive, following the failure to reach a compromise on how to revive the petrochemical company's image and operations.
CEO Piti Yimprasert, a representative of PTT Plc, one of the new shareholders, said Prachai Leophairatana had come up with impossible demands. "Khun Prachai proposed something that disrupted our talks. He wanted one-third of PTT's gain from buying TPI shares at Bt3.30 apiece. That's something we just cannot do no matter how much we might want to, as it's illegal," Piti said. The negotiations were initiated to solve over 60 legal cases involving TPI and Prachai. TPI's new management has to devote so much time to legal consultationsthat it cannot pay enough attention to the company's business rehabilitation. Prachai should not dream about making a comeback, given resistance from the new shareholders and the lack of financial institutions willing to do business with the old team, Piti said. To distance TPI from Prachai, shareholders at their meeting next Thursday will consider changing the company's name to Integrated Refinery and Petrochemical Plc, or IRPC. The name change should help sweep away TPI's tainted image and restore confidence among local and foreign investors in the company, Piti said. TPI's financial status has been improving since the participation of new partners, which began earlier this year, he said. After exiting bankruptcy protection, the company shouldered a total debt of US$965 million (Bt36 billion) owed to 50-60 creditors. Now the number of creditors has shrunk to eight and total debt to $800 million. "Throughout next year we will need to explain to foreign communities about the new shareholding structure and management team. Our mission is to ensure transparency and professional management. TPI does not belong to a single person but to all its shareholders," he said. TPI expects to earn a net profit of Bt11 billion to Bt12 billion on total revenues of Bt200 billion this year, depending on petrochemical-product prices. The company has also drawn up 50-60 projects to improve its business and increase revenue, including the sale of petrol and lubricants through PTT's retail network and the laying of a natural-gas pipeline to the power plant in the Rayong petrochemical complex to reduce oil use.
Watcharapong Thongrung The Nation
|
