The business rehabilitation plan of Sahaviriya Steel Industries Plc, the country's largest maker of hot-rolled coil steel, will soon be finished, says Siam Commercial Bank (SCB), one of SSI's major creditors.
"We expect to finish the plan in March," Arthid Nanthawitahaya, SCB's chief executive and deputy executive chairman, told the Bangkok Post after the Stock Exchange of Thailand (SET) suspended trading in SSI stock yesterday.
The SET's move came amid the possibility the debt-laden steel maker could soon be delisted after its shareholders' equity plunged into negative territory.
Mr Arthid said the rehabilitation plan was aimed ultimately at rescuing the ill-fated steel maker during this time of global economic crisis and plunging steel prices.
The steel maker's creditors and executives have been working closely together on the plan after the court approved the move, he said.
"We've been discussing the pros and cons as well as the possibilities of several options, one of them being to find a partner for SSI," Mr Arthid said.
In a statement yesterday, the SET said it was "currently considering SSI's financial status and operating performance to determine whether it could be subject to possible delisting. Therefore, the SET has posted an 'SP' [Suspension] sign prohibiting trading in SSI securities from Feb 16, 2016 until a conclusion has been made no later than seven business days or by Feb 25."
Win: Not available for comment yesterday
Company president Win Viriyapraphaikit was not available for comment yesterday.
Separately, the SET said SSI's auditor declining to issue an opinion on the firm's 2015 financial statements also prompted the SP sign.
The SET will post "NP" (Notice Pending) from today's first trading session until SSI has submitted its amended financial statements or the Securities and Exchange Commission decides the company does not need to amend them.
SSI reported its consolidated net loss widened slightly to 40.9 billion baht last year from 40.84 billion in 2014 due largely to its loss-making British subsidiary SSI UK Ltd.
Apart from falling global steel prices, the poor performance of the British steel making plant it acquired in 2010 is the main burden dragging down the parent firm's overall performance into negative territory.
Major creditors SCB, Tisco Bank and Krungthai Bank (KTB) earlier rejected a request by the steel maker for a debt rescheduling for SSI UK totalling US$790 million to the end of 2015 from an earlier deadline of the end of last September.
Later, it submitted a request to the Central Bankruptcy Court for a business rehabilitation plan after defaulting on its debt repayment.
In a filing to the SET last October, SSI said it had temporarily ceased iron and steel making operations at the loss-making steel plant in Teesside, England, although the power plant and coke oven were still operating as usual.
The parent and subsidiary borrowed a combined 48.4 billion baht from the three lenders -- 22 billion each from KTB and SCB and 4.4 billion from Tisco.
SSI shares were quoted at three satang before trading was suspended.
