Energy Earth plc

06/08/2017 | Press release | Distributed by Public on 06/07/2017 20:50

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

7 June 2017

Subject To inform the event of default of Bill of Exchange (Additional) 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 40,000,000.- (Forty 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 EARTH17606A

Face value totaling THB 40,000,000.- (Forty Million Baht)

Issue Date 6 March 2017

Maturity Date 6 June 2017

Interest Rate 3.95% 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

Moreover, the Company also cannot repay Bill of Exchange no. EARTH17608 amounted to THB50,000,000.- with maturity date on 08/06/17.

To rectify the tight cash flow problem, the Company is now negotiating with the financial institution and hoping to be able to renew credit facility within August 2017 and repay Bills of Exchange soon. 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.

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

Symbol

Face Value (THB)

Issue Date

Maturity Date

EARTH17608A

50,000,000

06/03/17

08/06/17

EARTH17615A

70,000,000

08/03/17

15/06/17

EARTH17621A

10,000,000

15/03/17

21/06/17

EARTH17711A

30,000,000

11/01/17

11/07/17

EARTH17712A,B,C

160,000,000

12/01/17

12/07/17

EARTH17719A

100,000,000

18/01/17

19/07/17

EARTH17726A,B

100,000,000

26/04/17

26/07/17

Total

520,000,000

The Company will temporary have a very tight cash flow situation. Once we clarify loans situation with commercial financial institutions, we will be able to repay such Bill of Exchanges. Currently the Company is still under regular operation,

Please be informed accordingly.

Sincerely Yours

(Mr. Thanawat Pratoomsuwan) Managing Director