TT&T goes to rehab as debts, net losses widen

10 Nov 2008

TT&T, Thailand’s largest provincial fixed line operator, has received approval from the Central Bankruptcy Court to enter a business rehabilitation plan, reports the Bangkok Post. Korawut Chiwaprecha, TT&T’s vice-president for finance, said the ruling would improve the company’s liquidity and financial health. He said TT&T would put a rehabilitation plan to a vote by its creditors within 45 days. TT&T currently has THB21 billion (USD610 million) of debt, including THB18 billion in long-term obligations of five to ten years, and THB3 billion of supplier credits. 45% of total debts involve a dozen local financial institutions, with the rest owed to foreign creditors. TT&T has defaulted on its full scheduled debt payments in two consecutive years.

TT&T reported a consolidated net loss of THB750.4 million for the third quarter to the end of September, compared with THB520 million a year earlier. Its nine-month net loss increased to THB1.8 billion from THB1.4 billion in the same period last year. TT&T recently denied any knowledge of rumours of a takeover proposal for its broadband internet arm Triple T Broadband.

Elsewhere in Thailand, fixed, mobile and broadband operator True Corp has announced plans for a THB20 billion capital increase to help it expand its operations.

Thailand, Triple T Broadband (3BB)