Creditors dismayed by unusual transactions at TT&T

10 Jun 2009

The Bangkok Post reports that creditors of Thailand’s largest provincial fixed line telco TT&T have sought asset protection from the bankruptcy court in their attempt to prevent transfers of assets and staff to broadband subsidiary Triple T Broadband. The move came as TT&T’s majority owner Jasmine International prepared to relocate another 700 TT&T staff to the lucrative broadband unit, which is 91%-owned by Jasmine with a minority stake held by TT&T. TT&T had earlier laid off 10% of its employees and transferred around 1,000 staff to Triple T, and is aiming to roughly halve its workforce to around 2,000.

A debt rehabilitation plan for TT&T has recently been approved; the telco owes THB19.9 billion (USD584 million) to domestic and foreign financial institutions, THB2 billion to its subsidiaries and THB4.8 billion to state-owned TOT, which granted its original build-transfer-operate (BTO) concession. Subsidiaries and associated units such as Triple T operate under their own individual licences granted by regulator the National Telecommunications Commission.

Thailand, Triple T Broadband (3BB)