Italian-Thai Development faces B108bn debt crunch as overseas projects fail
Italian-Thai Development (ITD), Thailand's leading construction firm, is grappling with a 108 billion baht ($3.3 billion) debt crisis due to failing international projects.
Investor confidence has been shaken, leading to a trading suspension of ITD shares this month after the company missed its deadline to file its 2023 financial statement.
ITD's financial troubles worsened with a reported cumulative loss of 6 billion baht from 2020 to 2022, burdened by problematic projects in India, Taiwan, and Myanmar where military rule caused significant disruptions.
In response, ITD is negotiating new bank loans and considering the sale of its mining division, while also seeking to defer bond payments for two years. Its market value has plummeted to 4.5 billion baht, down from a peak in 2023.
The company experienced a 45 million baht loss in the third quarter of 2023, despite earning 47 billion baht in the first nine months. ITD has requested a deadline extension from the Stock Exchange of Thailand for its financial reporting.
The SEC acknowledges the potential widespread impact of ITD's financial struggles due to its size and is intensifying oversight to enhance investor protection. Following payment problems and corporate misconduct in the industry, demand for high-yield bonds has declined.
ITD's operational funds fall short of its expenses leading to incomplete salary payments, as confirmed in a recent disclosure. TRIS Rating has signaled a potential downgrade from "BB+" given ITD’s financial covenant revisions and extension of bond maturities.
Notably, ITD has secured major state contracts, including infrastructure for a new high-speed train, expressways, and Suvarnabhumi Airport, Thailand's largest airport.
Founded in the 1950s by Chaijudh Karnasuta and Italian Giorgio Berlingieri, ITD's ties extend to the ownership of Bangkok's prestigious Mandarin Oriental hotel.
Controversy surrounds company President Premchai Karnasuta who was convicted of wildlife poaching in 2021 and subsequently released on parole in October 2023.
ITD's financial troubles worsened with a reported cumulative loss of 6 billion baht from 2020 to 2022, burdened by problematic projects in India, Taiwan, and Myanmar where military rule caused significant disruptions.
In response, ITD is negotiating new bank loans and considering the sale of its mining division, while also seeking to defer bond payments for two years. Its market value has plummeted to 4.5 billion baht, down from a peak in 2023.
The company experienced a 45 million baht loss in the third quarter of 2023, despite earning 47 billion baht in the first nine months. ITD has requested a deadline extension from the Stock Exchange of Thailand for its financial reporting.
The SEC acknowledges the potential widespread impact of ITD's financial struggles due to its size and is intensifying oversight to enhance investor protection. Following payment problems and corporate misconduct in the industry, demand for high-yield bonds has declined.
ITD's operational funds fall short of its expenses leading to incomplete salary payments, as confirmed in a recent disclosure. TRIS Rating has signaled a potential downgrade from "BB+" given ITD’s financial covenant revisions and extension of bond maturities.
Notably, ITD has secured major state contracts, including infrastructure for a new high-speed train, expressways, and Suvarnabhumi Airport, Thailand's largest airport.
Founded in the 1950s by Chaijudh Karnasuta and Italian Giorgio Berlingieri, ITD's ties extend to the ownership of Bangkok's prestigious Mandarin Oriental hotel.
Controversy surrounds company President Premchai Karnasuta who was convicted of wildlife poaching in 2021 and subsequently released on parole in October 2023.
