Executives of embattled property developer Natural Park are concerned that Sathorn Asset Management's bankruptcy lawsuit against the company might have an impact on its business and ongoing negotiations with a possible partner.

A source at Natural Park said the company was negotiating with a Japanese investor with a view to divesting its assets in Tokyo. It is also negotiating with a French investor before making a formal approach offering partnership in Park Cuisine, one of Thailand's representatives of the famous French Lenotre pastry house.

"The management has tried its best to solve the company's debt problems with financial institutions, and both creditors and possible partners are confused after the announcement that the company has [this] bankruptcy lawsuit," he said.

Natural Park's president Sermsin Samalapa told the Stock Exchange of Thailand that the company is being sued by Sathorn Asset Management for bankruptcy, despite it having fully paid debts valued at Bt39.59 million to Sathorn Asset Management while the company was under a business rehabilitation plan.

The Central Bankruptcy Court has accepted the case and it has been scheduled for the court's consideration.

Earlier, Natural Park felt the pinch after reporting that Ocean Life Insurance had sued it and requested that it declare insolvency.

The insurer is in the process of appeal after the Central Bankruptcy Court dropped the case.

To solve its financial problems, Natural Park has asked both Siam City Bank and Krung Thai Bank to reschedule loan repayments. Siam City Bank has so far denied the request and Krung Thai Bank is still considering it.

The company is to offer 4.02 billion capital-increase shares for subscription between June 11 and June 15. The shares will be offered to existing shareholders at a ratio of one new share for every two held at a price of Bt0.55 each - well above Natural Park's current market price of Bt0.22.

The company's net loss in the first quarter of this year was Bt296.79 million, after a loss of Bt249.13 million in the corresponding period last year. It has so far disposed of many assets, including the Natural Hotel and a significant stake in Bangkok Metro, Finansa and Siri Phuket.

Siriporn Chanjindamanee

The Nation