Major creditors of Bangkok Mass Transit System (BTS) have asked the Bangkok Metropolitan Administration (BMA) to step in as administrator of the Skytrain operator's debt-restructuring plan, the same as in the case of IRPC (formerly Thai Petrochemical Industry), in which the Finance Ministry appointed the plan administrators.

"If the Bangkok Metropolitan Administration acted as the plan administrator, it would be good, because the agency provides concessions to BTS. In addition, it will be able to link to the elevated train's extended routes planned by the BMA. We believe that both the creditors and the debtor would receive fair treatment in this case," a creditor source said yesterday.

BTS's debt-restructuring plan encountered an obstacle after the seven secured creditors objected to the plan and caused a deferral of the Central Bankruptcy Court's ruling on the case to next Wednesday. The creditors blocked the plan, because they felt the amount repaid to them would be smaller than it should be.

The creditors who objected to the plan included Thai Asset Management and Siam Commercial Bank, while Deutsche Bank London - the largest secured creditor, with total loans of Bt24.48 billion - voted in favour of the plan.

The Skytrain operator has debts of Bt59 billion under the restructuring plan. The source said the creditors had already sent additional information to the court.

The source said that even though the controversial plan was endorsed by the court, it was unclear how the rift between the creditors and the debtor could be settled.

The creditors do not intend to file civil or bankruptcy charges against BTS, because they consider it part of the country's infrastructure projects, said the source. But they cannot accept the plan proposed by company CEO Keeree Kanjanapas.

Keeree said he did not agree with the creditors' petition asking the government to step in as administrator of BTS's debt-restructuring plan. Most of the creditors opposing plan bought the debts from previous creditors, and what they would get back would be worth about 60-70 per cent of what was owed.

However, the source pointed out that the debtor intended to distort information by a summation of the net liquidation value at Bt19 billion, based on a discount of 9.5 per cent per year for six years.

Secured creditors earlier appointed two financial appraisers - Deloitte Touche Tohmatsu and Baker Tilly Thailand - to conduct studies, and they reported a liquidation value of Bt44.52 billion and Bt52.912 billion, respectively.

As for concerns that the conflict may disrupt Skytrain operations, the source confirmed that this was impossible, because the BMA stipulated in the concession contract that operations could not be disrupted.

In addition, the New York branch of Natexis Banques Populaires submitted a letter to the Central Bankruptcy Court confirming Skytrain operations would continue regardless of the outcome of the debt-restructuring plan.

Siriporn Chanjindamanee

The Nation