The company's creditors proposed the appointment.

Thai Wah is without a plan-administrator following its own withdrawal from the position late last year. The resignation saw the termination of co-administrator Grant Thornton too. Creditors holding 99 per cent of Thai Wah's Bt4.3-billion debt voted to appoint National Advisory.

Siam Commercial Bank, HSBC, Avenue Asia Capital Partner LP and Credit Agricole hold 88 per cent of all debt.

A creditor source said Thai Wah had given no reason for its resignation. However, there had been little progress in the company's debt restructuring in the past six years.

Creditors proposed the court extend business rehabilitation for one more year, saying they would lend the company another Bt300 million if the rehabilitation plan proceeded, he said.

Creditors agree Thai Wah can start servicing debt if its sells non-core assets worth around Bt3 billion.

In addition, Thai Wah has positive earnings before interest, tax, dividends and amortisation, reflecting ability to service debt, according to the source, who preferred not to be named.

Assets to be divested include land, a 34.78-per-cent stake in Laguna Resorts and Hotels, 45.5 per cent of Thai Wah Food Products and 19.8 per cent in Hong Kong-based Tropical Resort.

National Advisory director Warwick Kneale said Thai Wah had strong fundamentals and would be able to turn around quickly.

"Through the rehabilitation process, the company will be able to secure working capital from creditors to solve its current liquidity problems. Then its core tapioca business can proceed successfully," he said.

"Subsequently its non-core assets, particularly the company's 34-per-cent holding in Laguna Resorts, will be divested in accordance with the plan.

"The proceeds from sales will represent a large percentage of Thai Wah's total debt, and this will virtually ensure a successful reorganisation for the company."

Siriporn Chanjindamanee

The Nation