SET-listed Inter Energy Corporation (IFEC) is submitting a request for its subsidiary Dhara Dhevi Hotel to exit its rehabilitation plan with the Central bankruptcy Court today, said vice-chairman and chief executive Sitthichai Pornsupanan.
"After strictly following the [rehabilitation] plan step-by-step and clearing our debt, we are now ready to exit on time," said Mr Sitthichai.
The company in Dec spent 2.46 billion baht to acquire Dhara Dhevi Hotel Chiang Mai Group (DDV), which included hotel and property assets as well as liabilities of 2.52 billion baht.
Mr Sitthichai said on Monday the 300 million baht debt had been repaid to the creditor, Global One Asset Management, signalling they had fulfilled all the conditions of their exit plan.
There remains 650 million in accrued debt that the company plans to wipe out by year-end.
"Once we exit the court-supervised rehabilitation plan, we will be able to book several hundred million baht in gains from the debt restructuring for IFEC's second quarter earnings," said Mr Sitthichai.
Previously, an analyst at Maybank KimEng Securities assessed that IFEC would gain an estimated 700 million baht extraordinary gain from the debt restructuring.
In the third quarter, the company will launch two property projects. The first, to be located on 40 rai next to Dhara Dhevi hotel worth 625 million baht, will be undertaken as a joint venture with a SET-listed property developer.
Mr Sitthichai declined to disclose the name of the venture.
A source, however, said that IFEC had agreed to team up with SET-listed Raimon Land, with the plan slated to be announced in July.
The next project, on 80 rai, is a nearly finished condominium that was developed by its former owner.
"DDV asset sales will generate additional revenue of 1.38 billion baht, and we will gradually book this revenue in future quarters," said Mr Sitthichai.
The company also plans to seek a strategic partner for DDV.
"Under our plan, we will sell around 5-10% of DDV shares to a partner through a private placement to raise 1 billion baht. The proceeds will be used to invest in renewable energy," he said.
IFEC shares closed yesterday on the Stock Exchange of Thailand at 6.90 baht, up 25 satang, in trade worth 334 million baht.
