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Natural Park in urgent need of capital

Big reserves needed for pending lawsuits The troubled property holding company Natural Park Plc (N-Park) has asked its shareholders to raise its capital or the company might enter a rehabilitation plan again if it lost lawsuits filed by creditors. ''By the end of the year, we will know our fate. The worst-case scenario is that we lose the cases and cannot raise the capital to make a reserve, so our equity will erode and we will eventually have to enter rehabilitation again,'' said N-Park chief executive Sermsin Samalapa. He said the situation was very bad since as the company was being sued by creditors including Sathorn Asset Management, Bangkok Commercial Asset Management, Siam Commercial Bank and others, with a combined possible reserve of 649 million baht if it loses the cases. The three cases are pending. As of the end of 2008, it had a reserve of 1.079 billion baht _ 390 million baht for a case with Ocean Life Insurance with a compromise solution and 689 million baht with ACL Bank, which the company lost and is now appealing. ''It's an accounting loss. We need to set a reserve at the same amount we were sued for by the creditors. But we still have cash of 300 million baht, raised from the previous capital increase,'' Mr Sermsin said. ''We have no problem with our normal business operation but the cases hurt us.'' At the shareholders' meeting yesterday, N-Park asked its shareholders to consider approving a change in allotment and an offering of 13.6 billion ordinary shares at the offering price of one satang per share with a par value of one baht a share. Because of the reserve of one billion baht for the first two cases and another case early this year with a reserve of 201 million baht, the company's accountable capital has fallen to 47 million baht from two billion baht at the end of 2008. As soon as directors opened the floor for questions, a shareholder rose and blamed the company's management and complained about its share price, which at one satang has almost no value. She questioned the executive directors about whether the share price would fall to zero if the allotment and offering of new shares were approved. ''How could you manage this company until the share price fell to the floor?'' she asked. Mr Sermsin replied, ''You don't need to buy [new shares]. ''Please be polite and respect other shareholders' rights,'' he added. ''If you talk with reason, we can accept that but we cannot if the talk is meant to agitate.'' However, the investor continued to rebuke Mr Sermsin. ''Do you want a shoe thrown?'' she asked, and threw a glass of water at the stage, which did not reach the executive directors and harmed no one. She was invited to leave the room. Mr Sermsin shared an experience after Songkran when a woman called the company in the morning and afternoon and rebuked him with rude words. He explained that the suits by creditors had caused a sharp fall in share prices. ''If we did not manage the company, share prices might be negative and N-Park would have to exit the SET.'' He asked the shareholders to study the company's updated information on the website www.nparkfactandinfo.com before making a decision. ''Our company has a quick-spreading cancer. We have no choice. We need to get an injection. ''If you think we will not survive, I suggest you sell at one satang. But if you think we can survive, share prices might reach five to six satang,'' he said and added management would try to prevent a loss in equity. It will also continue to fight the lawsuits. N-PARK shares closed unchanged yesterday on the SET at two satang, in trade worth 987,000 baht. Bangkok Post May 1, 2009

 

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