Explain follow-up on debtor - SET

The Stock Exchange of Thailand yesterday demanded that Picnic Corp provide additional information by Thursday concerning a debtor.

The SET ordered Picnic to clarify the debt follow-up on Ruang Rattana Gas Partnership Ltd. Ruang Rattana Gas Partnership sold accounts receivable worth Bt49 million to Anukul Tungruengkiat and has agreed to repay Picnic at least Bt50,000 per month within one year.

The SET said Picnic needed to clarify whether Picnic had imposed any conditions on Ruang Rattana for the use of the money from selling the assets to repay Picnic as the agreement specified within one year. If not, Picnic must specify actions to make the debt collection in accordance with the repayment agreement.

In addition, Picnic needs to clarify the name of the other filling-gas companies which made a purchase or sold contracts to repay debts in this way.

Moreover, Picnic made a series of rental agreements with a group of 14 filling-gas companies. In order to offset the account receivable with the rental fee, most of these contracts ended in September and October last year, with only three extended.

The SET asked Picnic to specify any effects on its operation from the non-renewal of the leasing contracts with this group of companies.

According to the financial statement of Picnic as of March 31, 2007, there is a transaction that appears to settle the rental-fee account payable of Bt25 million. On the other hand, the rental fee from the group of filling-gas companies from the beginning to the end of the contract is about Bt8.42 million.

The SET demanded that Picnic clarify the settlement transaction of Bt25 million by stating the name and amount of each debtor. The company needs to explain the reason it made the transaction while there was no renewal of rental contracts.

Picnic earlier gave the SET additional information concerning the lease, with compensation exceeding that of common leases in five contracts totalling Bt195 million by Worldgas (Thailand) Ltd with Anukul.

Picnic's subsidiary paid advance receivables of leasehold right fees amounting to Bt172 million in order to operate gas filling - 88 per cent of the total contract.

Siriporn Chanjindamanee

The Nation