ACAP Sheds 12% after Announcing a Default from 7 Series of Debentures Worth ฿1.88Bn!

The share price of Asia Capital Group Public Company Limited (ACAP) dropped ฿0.10/share or 12.20% to ฿0.72/share as of 10:22 local time in Thailand (GMT+7). The decrease was due to the announcement of default from ACAP last night.

 

Earlier today, the Stock Exchange of Thailand (SET) advised investors to carefully study ACAP’s event of defaults information before making investment decisions as Asia Capital Group Public Company Limited (ACAP) disclosed information about the event of defaults, guidance for problem solving and impact on financial status as follows.

1) ACAP defaulted on the repayment of both debentures on due date and debentures under bondholders’ meeting resolution requiring immediate redemption in the total amount of 689.40 million baht represents 18% of the company’s total assets as at 31 March 2020.

2) The said failure in No.1 resulted in a cross default involving other debts totaling to 1,885.98 million baht which is equivalent to 49% of the company’s total assets.

3) ACAP will expedite the sale of its properties and find a source of funds to repay to bondholders. On the basis of the company’s financial status, the company’s assets are greater than its liabilities which is still sufficient to cover debts.

 

Late last night, ACAP stated that when including the amount of defaulted debentures which could not repay principal and interest with the amount of principal and interest of debenture which immediately due, the total amount is more than 500 million baht threshold. This circumstance has caused the default of the remaining outstanding debentures of the company (Cross default). The detail of defaults are as follows;

 

1) Details of the defaulted debenture and debenture that was immediately due following the resolution of the Bondholder Meeting.

2) Details of the other defaulted debentures (Cross default) that have not yet been dued to redeem.