Energy Earth plc

06/09/2017 | Press release | Distributed by Public on 06/08/2017 22:25

To inform the event of default of Bill of Exchange (Additional 3)

9 June 2017

Subject To inform the event of default of Bill of Exchange (Additional 3) Attention President

The Stock Exchange of Thailand

Energy Earth Public Company Limited ("EARTH") has issued and offered the Bill of Exchange via Private Placement amounted to THB 50,000,000.- (Fifty Million Baht) with a financial institution. The Company would like to inform the event of default of the Bill of Exchange as follows;

Bond Information Bill of Exchange, offered via Private Placement for 3 transactions

with Symbol EARTH17608A

Face value totaling THB50,000,000.- (Fifty Million Baht)

Issue Date 8 March 2017

Maturity Date 8 June 2017

Interest Rate 4.00% p.a. (deducted in advance on the issuing date)

Financing Purpose For working capital financing

Reason of Default Tight cash flow and financial credit facility under being reviewed

by the financial institution

During the event of default, the Company has the obligation to repay default interest at 7.5% p.a., however, this event of default does not constitute other creditors to call default on other liabilities to become immediately due and payable.

Moreover, the Company also cannot repay Bill of Exchange no. EARTH17615A amounted to THB70,000,000.- with maturity date on 15/06/17.

The maturity within June and July 2017 are summarized as follows;

Symbol

Face Value (THB)

Issue Date

Maturity Date

Interest Rate

Financial Institution

EARTH17615A

70,000,000

15/03/17

15/06/17

3.95

SCB

EARTH17621A

10,000,000

15/12/16

21/06/17

3.75

KGI

EARTH17711A

30,000,000

11/01/17

11/07/17

3.75

KGI

EARTH17712A

10,000,000

12/01/17

12/07/17

4.10

SCB

EARTH17712B,C

150,000,000

12/01/17

12/07/17

4.10

KGI

EARTH17719A

100,000,000

18/01/17

19/07/17

4.37

NOMURA

EARTH17726A

80,000,000

26/04/17

26/07/17

4.40

SCB

EARTH17726B

20,000,000

26/04/17

26/07/17

5.00

KTBS

Total

470,000,000

The default Bill of Exchange amounted to THB 90 million account for 0.25% of total assets.

The event of default may cause the financial institutions to review credit facility and the Company may not be able to issue new Bills of Exchange to refinance Bills of Exchange that have become due and payable. Moreover, the Company's business creditability may become low and the Company has to conduct future business on cash basis.

Furthermore, the event of default of debt amounted to THB500 million (not including trade creditor) may constitute an event of default of the bond that the Company has offered no.1/2558 with maturity in 2017 and no.1/2559 with maturity in 2019, totaling THB5,500 million to become due and payable, subject to the resolution of the bondholder meeting to be held and considered in the near future.

To rectify the event of default, the Company is now negotiating with the financial institution to review and renew credit facility on special conditions to normalize financial transaction. The Company hopes to reach conclusion with the financial institution within August 2017 and plan to repay Bills of Exchange soon. Meanwhile, the Company will carry on business as normal.

Please be informed accordingly.

Sincerely Yours

(Mr. Thanawat Pratoomsuwan) Managing Director