The banks, which include local and foreign institutions, are attempting to remove previous major shareholder Prachai Leophairatana and his team as plan administrator for the cement producer. A plan administrator is appointed by the court to manage the affairs of a company and restore it to financial health. Hearings at the Central Bankruptcy Court begin this month and the conflict is being played out in the press.
Prachai has cast himself as the victim of ruthless banks, while the banks charge that he has delayed restructuring and blocked the entry of potential investors. Up to now, however, the creditors' committee has been hard-pressed to match Prachai's media savvy.
"This is a sensitive issues management assignment, and important because it is to do with the country's largest and most visible bankruptcy," said BPR managing director Hasan Basar. "Our role is to help the creditor's committee communicate more effectively." TPIPL's debts total a massive US$1.2 billion and stakes are high, as investors view it as a test case of Thailand's bankruptcy system.
PR Week on p16 & 17.
