Debt-ridden Natural Park is preparing to raise capital through a private placement following its failure to sell 4 billion shares in a rights issue.

Just 20 shareholders exercised their rights last week.

A company source said attempts to declare Natural Park bankrupt "made it hard" to sell shares. Investors have lost confidence in the property developer, he added.

The company yesterday told the Stock Exchange of Thailand (SET) that 20 shareholders owning a total of 146,000 shares exercised rights. Foreign corporate investors expressed interest in 150,000 shares. It added shares were priced at 55 satang, and the proceeds of the issue were Bt162,800.

The source said directors were considering other ways to raise money. It is likely there would be a private placement.

Nevertheless, the source said difficulty was expected as a result of the litigation.

Natural Park president Sermsin Samalapa last month told the SET that Sathorn Asset Management was suing the company for bankruptcy. He said Natural Park had settled debts of Bt39.59 million owed to Sathorn during Natural Park's time in rehabilitation.

The Central Bankruptcy Court will hear the case soon.

The court recently threw out insolvency action brought by Ocean Life Insurance against Natural Park. An appeal has been made against the decision. Yesterday, Natural Park insisted it had divulged all past insolvency information.

Siam City Bank recently suspended an auction of Pacific Assets and Sansiri stock held as collateral against an unpaid Bt1.3-billion loan to Natural Park after the company agreed to make payments in three instalments.

Siriporn Chanjindamanee

The Nation