Manager group revamps after rehab plan collapses

The move comes after the company decided not to appear in the Civil Court on Tuesday, when the court considered the request to extend the rehabilitation period.

A company source told Reuters that its plan administrator had decided to kill the rehabilitation plan by not appearing in court and let creditors seize its assets as well as the published brands.

Tullaya Sirikulpipatana, director of Manager Media Group, acknowledged yesterday that the company had not appeared in court, but he declined to disclose the reason.

He did say, however, that the creditors might

eventually seize the company's assets.

Following the asset transfer to the new entity, Manager Media Group's three brands - Manager Daily, Manager Weekly and Manager magazine - will become ASTV Manager, ASTV Weekly and ASTV Manager, respectively.

Other sources from Manager Media Group said the company's executives yesterday held a conference with its employees, and attended by reporters, to clarify the situation. The executives told the meeting that the group had to allow creditors to seize its assets because it has huge debts that it is unable to pay back.

Krung Thai Bank, one of Manager Media Group's creditors, declined yesterday to say what action it would take following the company's decision to end the rehabilitation plan.

Meanwhile, Kasikornbank, a former major creditor and shareholder, has no debt in Manager Media Group after selling its interest to Sukhumvit Asset Management.

Manager Media Group's debts under restructuring are worth Bt4.7 billion. Bt2.3 billion comprises loans to the company, while the rest is borne from loan guarantees.

Its rehabilitation plan was approved by the Central Bankruptcy Court in August 1999.

Financial institutions that extended credit to the company include some that have since shut down and others that are now part of BankThai.

Krung Thai Bank and Kasikornbank owned some of the loans guaranteed by the group, at Bt259 millionand Bt21 million, respectively.