Common! ITD defers payment of all its 2-year ITD242A 2 billion bonds due on February 15.

Reporters reported that there is news in the world of social media stating thatItalian Thai General Development Company Limited or ITD He is willing to send a letter to the bondholder creditors requesting that the payment of principal on all bonds be deferred for another two years, but along the way the interest will be paid as usual.

There is also news that ITD will send a letter notifying details of debt payment deferral to bondholders on January 8, 2024, and bondholders will be informed of the details. Especially the payment that is about to mature on February 15, 2024, as ITD's total bond debt exceeds 14.5 billion.

As for ITD bonds, there are currently 5 series with a total value of 14.455 million baht, divided into 3 series of bonds due this year:

Model ITD242A due on February 15, 2024 with a value of 2,000 million baht.

Model ITD242DA is due on December 4, 2024 and is valued at 2,455 million baht.

Model ITD24DB is due on December 4, 2024 and is valued at 1,215 million baht.

Model ITD254A due on April 29, 2025 for 6,000 million baht.

Model ITD266A due on June 2, 2025 for 2,785 million baht.

If the matter is mentioned in this case, the creditor will consider it a failure to pay the debt. This may have a continuing impact on loans made by commercial banks, of which ITD currently holds more than 25 billion baht, which may become bad debts (NPL).

As for the news that there are fears that ITD will request a debt payment moratorium after it began to indicate that there may not be money to pay interest on the bonds. Which was scheduled to be repaid on December 4, 2023, prompting relevant commercial banks to urgently intervene to assist, thus narrowly escaping a default.

One of the main problems that ITD has faced in the past is that many investment projects have failed. The entire project did not go according to plan. The projects that were delayed than planned due to the clarity of the government sector and the situation are undesirable and affect the company’s liquidity

Whether it is investing in the Dawei Special Economic Zone project in Myanmar, with a total value of more than 8 billion baht, to the high-speed railway construction project connecting 3 airports, worth approximately 4 billion baht, with ITD not returning from these projects at all.

In addition, there are pipeline budget issues and delayed budget disbursement from the government sector that ITD has appointed to receive the work. Which makes ITD's liquidity more tight.

Meanwhile, ITD's financial statements for the past five years showed a sustained net loss, excluding the nine months of 2023, which generated a net profit of nearly 379 million baht, partly due to the sale of assets, making the balance sheet look healthy and profitable. In 2022, there was a net loss of 4,759 million baht, 2021, a net loss of 155 million baht, 2020, a net loss of 1,104 million baht, and 2019, a net loss of 37.34 million baht.

In addition, ITD's liquidity faces serious problems. Its current liabilities amount to about 71 billion baht, while its current assets amount to about 64.5 billion baht.
It has bond debt due in February 2024 of about 2 billion baht and long-term debt due within one year of about 16 billion baht.

Meanwhile, assets include cash and cash equivalents worth 4 billion baht, deposits in financial institutions subject to use trading restrictions worth 781 million baht, and short-term investments in debt instruments worth another 514 million baht.