Energy Earth plc

06/20/2017 | Press release | Distributed by Public on 06/20/2017 10:02

To inform the event of default of Bill of Exchange and Trade Finance Facility

20 June 2017

Subject To inform the event of default of Bill of Exchange and Trade Finance Facility Attention President

The Stock Exchange of Thailand

Reference Tables of Overdue Bills of Exchange and Trade Finance Facilities as at 15 June 2017

  1. Energy Earth Public Company Limited ("EARTH") has issued and offered various Bills of Exchange via Private Placement with various financial institutions as underwriters. The Company would like to inform the event of default of the Bill of Exchange as at 15 June 2017 as follows;

    B/E Issuer

    Energy Earth Public Company Limited

    B/E Holder

    Various investors via Private Placement

    Bond Type

    Bill of Exchange

    Face Value

    THB 160,000,000 (not including interest)

    Collateral

    None

    Reason of Default

    Liquidity problem

    Repayment Terms

    Interest deducted in advance on the issuing date. Principal will be repaid on maturity date.

    Interest Rate

    As per table below

    Overdue Date

    Symbol

    Face Value (THB)

    Issue Date

    Maturity Date

    Interest Rate

    EARTH17606A

    40,000,000

    06/03/17

    06/06/17

    3.95

    EARTH17608A

    50,000,000

    08/03/17

    08/06/17

    4.00

    EARTH17615A

    70,000,000

    15/03/17

    15/06/17

    3.95

    Total

    160,000,000

    Default Interest Rate

    7.5% p.a.

    Overdue Outstanding Size

    Representing 0.45% of total assets as at 31 March 2017

    The Outstanding Bills of Exchange and Bonds are summarized as follows;

    Symbol

    Face Value (THB)

    Maturity Date

    Interest Rate

    EARTH2016/125

    10,000,000.00

    21/06/17

    3.75

    EARTH2017/001

    30,000,000.00

    11/07/17

    3.75

    EARTH2017/003

    50,000,000.00

    12/07/17

    4.10

    EARTH2017/004

    100,000,000.00

    12/07/17

    4.10

    EARTH1740001

    10,000,000.00

    12/07/17

    4.10

    EARTH1820001

    10,000,000.00

    12/07/17

    3.95

    EARTH1820002

    10,000,000.00

    12/07/17

    3.95

    EARTH1820003

    10,000,000.00

    12/07/17

    3.95

    EARTH1820004

    20,000,000.00

    12/07/17

    3.95

    EARTH001/2017

    100,000,000.00

    19/07/17

    4.37

    EARTH-260417/01

    10,000,000.00

    26/07/17

    5.00

    EARTH-260417/02

    10,000,000.00

    26/07/17

    5.00

    EARTH1830001

    10,000,000.00

    26/07/17

    4.40

    EARTH1830002

    10,000,000.00

    26/07/17

    4.40

    EARTH1830003

    10,000,000.00

    26/07/17

    4.40

    EARTH1830004

    20,000,000.00

    26/07/17

    4.40

    EARTH1830005

    30,000,000.00

    26/07/17

    4.40

    30 bills

    720,000,000.00

    8/2017

    4.10 - 4.60

    3 bills

    173,000,000.00

    9/2017

    4.10 - 4.60

    11 bills

    200,000,000.00

    10/2017

    4.10 - 5.50

    5 bills

    85,000,000.00

    11/2017

    4.60 - 5.50

    Bond

    100,000,000.00

    5/2018

    4.50

    Bond

    150,000,000.00

    10/2018

    4.66

    Total

    1,878,000,000.00

  2. Energy Earth Public Company Limited ("EARTH") has received the trade finance facility from a local bank. As at 15 June 2017, the overdue outstanding of trade finance are as follows;

    Borrower

    Energy Earth Public Company Limited

    Lender

    A local bank

    Borrowing Type

    Trade Finance Facility

    Outstanding Amount

    THB 887,126,015.47 (not including interest)

    Collateral

    Personal guarantee by Directors and pledge of Company shares

    Reason of Default

    Liquidity problem

    Repayment Terms

    To repay when debts become due

    Interest Rate

    LIBOR + 2.5% p.a.

    Overdue Transactions

    Reference No.

    Amount (THB)

    Due Date

    8357EP16010697

    11,564,595.97

    24-05-17

    8357EP16010867

    92,668,275.00

    24-05-17

    8357EP16011080

    67,956,735.00

    24-05-17

    8357EP16011082

    66,191,625.00

    24-05-17

    8357EP16010864

    43,630,500.00

    26-05-17

    8357TO16006516

    73,000,000.00

    29-05-17

    8357TO16006632

    100,825,704.00

    05-06-17

    8357TO16006759

    65,434,068.00

    12-06-17

    8357EP17001748

    106,232,595.00

    14-06-17

    8357EP16011488

    76,742,675.00

    15-06-17

    8357EP17000540

    50,679,125.00

    15-06-17

    8357EP17000539

    47,783,175.00

    15-06-17

    8357EP17000283

    84,416,942.50

    15-06-17

    รวม

    887,126,015.47

    Default Interest Rate

    18.00 % p.a.

    Overdue Outstanding Size

    Representing 2.48% of total assets as at 31 March 2017

  3. As at 31 March 2017, the Company has total assets of THB 35,725 million, total liabilities of THB 25,034 million and total equities of THB 10,690 million. Total liabilities represent 70.07% of total assets. At present, the company has overdue amounts that have constituted an event of default of the Bond. The liabilities that may become overdue in June are as follows;

  4. The overdue of trade finance and bills of exchange totaled THB 1,047,126,015.47 as follows;

    • Overdue bills of exchange amounted to THB 160,000,000.-

    • Overdue trust receipt and packing credit with financial institution amounted to THB 887,126,015.47

  5. The event of default of two Bond totaled THB 5,500,000,000.- as follows;

    • The Bond of Energy Earth Public Company Limited no.1/2558 with maturity in 2017 amounted to THB1,500,000,000.-

    • The Bond of Energy Earth Public Company Limited no.1/2559 with maturity in 2019 amounted to THB4,000,000,000.-

      The overdue amount has constituted an event of default, which state that "the Bond issuer has overdue borrowing (not including trade supplier) or guarantee in the amount exceeding THB 500,000,000 (Five Hundred Million Baht)" according to the event of default and its consequence article 11 and the bondholder meeting may have a resolution to consider all principal and interest to become due and payable immediately. However, the bondholder meeting may also consider otherwise as appropriate.

      The Company may hold a meeting as per the terms and conditions of the bond agreement article 11.2, if the Company had been requested by written notice from a bondholder or various bondholders, holding not less than 25% of outstanding bond. The majority voting requires not less than 50% of voting right presented at the meeting. Also, the Company may hold a meeting within 30 days from the occurrence of such event, according to the terms and conditions of the bond agreement article 12.1

  6. Total liabilities that may become overdue in June 2017 amounted to THB 405,706,091.10 as follows;

    • Overdue a bill of exchange amounted to THB 10,000,000.-

    • Overdue trust receipt and packing credit for 6 transactions with financial institution amounted to THB 395,706,091.10

    The events of default have caused all of the financial institutions to review credit facility and temporarily suspended the credit facilities. As a result, the Company cannot use credit facility and has not been able to issue new Bills of Exchange to refinance Bills of Exchange that have become due and payable. Meanwhile,