PACE Hurriedly Advances to Negotiate with SCB and Restructures Business to Solve “C” Sign

PACE Development Corporation Public Company Limited (PACE) has published its public presentation on November 25, 2019, for investors and related persons to clarify the company’s performance due to the fact that the shareholders’ equity is less than 50% of paid-up capital for the company’ third-quarter 2019 financial statements. In the presentation, PACE had made clarifications as follows;

 

PACE’s business framework

1) PACE is on processing to the consulting and negotiating with The Siam Commercial Bank Public Company Limited (SCB) to prepare an efficient and stable financial restructuring and debt management plan to be able to carry on operations.

2) As part of financial restructuring, PACE has conducted two major actions. One of which is to inform the solution of the event of cross-default of the debentures of the company. The bondholder meeting considered and resolved the agendas which were summarized as follows:

2.1) Approved to waive the event of default under Clause 11.1 (c) of the Terms and Conditions of the Debentures of PACE as a result from the event of default with SCB with a majority of 84.8775%.

2.2) Approved to extend the maturity date of the Debentures of PACE which due 23 February 2020 to 23 February 2023 whereby the issuer can redeem prior to the maturity date, either in whole or in part, with a majority of 81.8565%.

2.3) Approved to amend the interest rate of the debentures by keeping the fixed interest rate of 6.5% per annum whereby the issuer shall pay the interest every quarter at the rate of 3.0% per annum commencing from 23 May 2020 and the difference of the interest of 3.5% per annum shall be paid on redemption of debentures, with a majority of 78.0991%.

2.4) Approved to amend the interest rate of the debentures by keeping the fixed interest rate of 6.5% per annum whereby the issuer shall pay the interest every quarter at the rate of 3.0% per annum commencing from 23 May 2020 and the difference of the interest of 3.5% per annum shall be paid on redemption of debentures, with a majority of 78.0991%.

2.5) Approved to amend the interest rate of the debentures by keeping the fixed interest rate of 6.5% per annum whereby the issuer shall pay the interest every quarter at the rate of 3.0% per annum commencing from 23 May 2020 and the difference of the interest of 3.5% per annum shall be paid on redemption of debentures, with a majority of 78.0991%.

2.6) Approved to postpone the payment of interest for the round of November 2019 to be no later than 23 February 2023 with a majority of 87.5000%.

3) During the last quarter of 2019, as part of the financial restructuring plan, PACE has disposed of shares in a subsidiary in which enable the company to reduce debts from such divestment in a total of 1.51 billion Baht in the third quarter financial statement.

 

Gourmet Food and Beverage Business

1) Restructure the business operations by separating the business into a regional segment in order to create more efficiency and increase regional suitability.

2) Undergo a “rightsize” strategy through cost control and merging of chain operations to minimize losses from unprofitable branches with plans to revamp the ailing gourmet grocer business by splitting operations in Asia and the US for business restructuring.

3) To stop losses in the US operation within 2019

4) Expand stores and value-added Dean & DeLuca brands for both domestic and overseas locations through franchise models in Europe, North America and especially in Asia.

5) The store expansion plan operates as intended. The two franchised stores in Phuket have opened its door and generated revenue during the third quarter while the two company-owned stores are set to complete and open during the last quarter of 2019.

6) The operation in Thailand has shown significant improvement since the second half of 2018 due to better management in the costs of services and production of food and beverage. The new marketing strategy has successfully implemented and reflected in the performance of all company-owned stores in Thailand.