PACE Reports a Default Amounting ฿2.6bn and Cross Default Amounting 9.2bn with SCB!

Pace Development Corporation Public Company Limited (PACE) has made an announcement on October 21, 2019, stating that the company has received the notice of default from The Siam Commercial Bank Public Company Limited (SCB) dated October 18, 2019 requested PACE and its subsidiaries to pay the outstanding debts at the amount of 2,645,126,806.88 baht.

The debt is due within 15 days after receiving the notice which is 2 November 2019 which falls onto a holiday; therefore, the due date will be shifted to the following business day which is 4 November 2019.

 

Moreover, such event of defaults with SCB as mentioned had caused event of default in other obligations that PACE’s and its subsidiaries have with SCB and/or other creditors in the amount of 9,227,026,619.42 baht as follows:

1) The event of default of the credit facility agreement with respect to MahaSamutr Villa Project with an outstanding debt of 1,761,662,790 baht and an interest rate between 2% per annum to MLR -0.5. The maturity date will be the earlier of either (i) the first date of the due period twelfth months from the completion date of Nimit Langsuan project or (ii) 30 December 2019.

2) The event of default of the credit facility agreement with respect to MahaSamutr Country Club Project with an outstanding debt of 683,710,000 baht and an interest rate between 2% per annum to MLR -0.5. The maturity date will be the first date of the due period 5 years from the project completion date but no later than 30 June 2022.

3) The event of default of the credit facility agreement with respect to NIMIT Langsuan Project with an outstanding debt of 2,136,420,447 baht and an interest rate between 2% per annum to MLR -0.5. The maturity date will be the earlier of either (i) the first date of the due period twelfth months from the completion date of the project or (ii) 30 December 2019.

4) The event of default of the credit facility agreement with an outstanding debt of 327,781,313.93 baht and an interest rate of 4% per year. The maturity date will be 30 December 2019.

5) The event of default of the credit facility agreement with an outstanding debt of 1,812,827,552.28 baht and an interest rate of 4% per year. The maturity date will be 30 December 2019.

6) The event of default of the credit facility agreement with respect to Dean & DeLuca, Inc. with an outstanding debt of 33,852,899.50 United States Dollar, or equivalent to 1,035,624,516.21 baht and an interest rate of 4% per year. The maturity date is on 17 October 2019.

7) The event of default of the credit facility agreement with an outstanding debt of 70,000,000 baht and an interest rate of 12% per year. The maturity date is on 10 August 2019.

8) The event of default of the credit facility agreement with an outstanding debt of 180,000,000 baht and an interest rate of 12% per year. The maturity date is on 30 June 2020.

9) The event of default of the Debentures of Pace Development Corporation Public Company Limited No. 1/2560 due B.E. 2563 with an outstanding debt of 1,219,000,000 baht and an interest rate of 6.50% per year. The maturity date is on 23 February 2020.

The total liabilities of PACE and its subsidiaries as at 30 June 2019 are 20,819,046,056 baht.

 

PACE has asserted that the company shall accelerate consulting and negotiating with SCB to prepare an efficient and stable financial restructuring and debt management plan of PACE to find a solution to be able to carry on operations and maintain its business value, including the retention of competitiveness of its business. If the financial restructuring plan and debt management can be implemented successfully, PACE will be able to continue developing the under construction projects.

 

The responsibility of PACE’s loan repayment with SCB may impact on the financial positions and the repayment capacity of PACE, due to the high amount of debts to be paid. Nevertheless, as the remedy procedures mentioned above, after the successful implementation of the financial restructuring plan and debt management, it may help resume construction of the projects that have been suspended and we will be able to complete those projects. Such event will not affect the operation with respect to food and beverage.

However, PACE is under process of consulting and negotiating with SCB to prepare the financial restructuring and debt management plan and PACE anticipates that the progress regarding such matter can be reported to the Stock Exchange of Thailand by November 2019.