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  1. #1
    Mid
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    NACC Finds Thaksin Guilty of Corruption in TPI Rehabilitation Plan

    NACC Finds Thaksin Guilty of Corruption in TPI Rehabilitation Plan
    16 July 2010

    The National Anti-Corruption Commission (NACC) has found former PM Thaksin Shinawatra and his associates guilty of corruption in carrying out the rehabilitation plan of TPI, the country's largest private firm debtor in Thailand.

    The case will now be sent to the Supreme Court for political postholders for a final verdict.

    thailandoutlook.tv

  2. #2
    Mid
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    some background :

    BANGKOK POST

    DEBT RESTRUCTURING: TPI rehabilitation plan is completed;

    Kochakorn Boonlai and Busrin Treerapongpichit
    September 21, 2000

    Sent to Bankruptcy Court next Monday

    The long-awaited business rehabilitation plan for Thai Petrochemical Industry Plc has been completed, according to Anthony Norman, managing director of Effective Planners Co.

    The plan would be submitted to receivership officials in the business rehabilitation office of the Central Bankruptcy Court on Monday, he said.

    TPI creditors are expected to vote on the plan in November, and Mr Norman expressed confidence that they would approve it, as the plan would strengthen the financial health of TPI in the future.

    The main component of the plan would involve converting outstanding interest of US$756 million into a 75% stake of TPI's registered capital, with conversion at 5.45 baht a share.

    However, the converted shares could not be sold until TPI's rehabilitation plan was fully implemented, which would be in 2004.

    TPI chairman Prachai Leopairatana would have the right of first refusal in buying back the converted shares at 5.45 baht each, plus 1.5 times the prevailing interest rate.

    In repurchasing the shares, Mr Prachai could buy all the shares alone or with other former shareholders of TPI.

    Mr Norman said the remaining debts would be divided into two groups. On the first group totalling $2 billion, scheduled interest payments would be made, with the principal repaid on Dec 31, 2004. The same schedule would apply to a second group of debts totalling $1 billion.

    The rehabilitation plan requires the disposal of TPI's non-core assets totalling $200 million to repay its loans in 2001. There is no mention of which non-core assets would be sold.

    Nor does the plan mention a previously contentious proposal to increase TPI's capital by about $700 million. However, it does allow for additional sources of funding. TPI would be allowed to borrow up to a maximum of $250 million, but not to raise new capital until after 2004.

    All its existing loans in terms of baht, US dollars, euros and yen would be converted into one common currency.

    Seven TPI affiliates that have filed for business rehabilitation would adopt plans similar to TPI's.

    Mr Prachai said yesterday that he accepted the final plan as the best one possible under the circumstances. He said one important improvement was a condition that the creditors who would be TPI's major shareholders could not sell their shares until 2004. Earlier agreements contained no such restriction.

    He said the conditions preventing share sales and allowing for buy-backs later would benefit all concerned and would help the price of TPI shares improve steadily.

    As creditors would not be able to sell their shares over the next four years, only 25% of the shares would be available for trading in the market.

    Mr Prachai said the amount of shares to be bought back after 2004 would depend on the prevailing situation at the end of the rehabilitation period.

    "Earlier, I had already made up my mind to accept whatever would happen. The conditions offered in the plan are quite acceptable. However, it is definite now that I would have to lose my control of TPI as I am no longer its major shareholder."

    He said he was pleased, however, that the planner had agreed to postpone the disposal of TPI's non-core assets as they might not fetch good prices at present.

    In particular, there was a plan to cut TPI's stake in cement maker TPI Polene to 30% from 48% after the latter completed its debt-equity conversion.

    Mr Prachai said he had no objection to the disposal but the selling price of TPI Polene shares had to be properly considered.

    However, he said he strongly opposed the idea of selling TPI's power plant as it played a very crucial role in the conglomerate's core business and was central to its business rehabilitation and long-term viability.

    insolvencyasia.com

  3. #3
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    S'hhhh, don't mention TPI.

  4. #4
    Mid
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    see also :

    Prachai Leophai-ratana

    From Wikipedia, the free encyclopedia


    Prachai Leophai-ratana is a former Senator and a controversial Thai businessman who founded Thai Petrochemical Industry (TPI).

    Prachai founded Thai Petrochemical Industry in 1978, based on companies his grandfather founded during World War II.[1]. Thai Petrochemical Industry (TPI) group begun in rice milling, and had extended to gunnysacks, textiles, and insurance in the second generation. In 1979, the group consisted of nineteen firms still based mainly in agriculture-related sectors. The patriarch of this second generation, Porn Leophairatana, sent his sons to the USA to study accounting, economics, and chemical engineering. Returning to Thailand in the era when the economy was shifting decisively towards industry using newly found supplies of natural gas, Prachai Leophairatana and his five siblings launched the firm into cement and petrochemicals. By the mid-1990s, the number of firms had expanded to forty-four, total revenues had multiplied twenty-five times. TPl had risen rapidly to second rank in the cement market, behind the venerable Siam Cement. It had also become a major player in the booming petrochemicals industry. TPl had financed this rapid expansion by listing its major companies on the stock market, but had also taken large loans from domestic banks and international banks. By 1994, it had become Southeast Asia's first fully integrated petrochemical company. TPI invested in a wharf and handling facilities on Thailand's eastern seaboard, built a 100-megawatt power plant, and even owned a cement company and opened its own gas stations.

    Yet the management remained closely controlled by the family, and especially by Prachai, the eldest son and reigning patriarch, and two brothers. Across their twenty-five principal companies, the three siblings were directors in every one. Prachai was chairman of fourteen and CEO of five others, and two other relatives also appeared on the boards. In most cases, the members of the board and the executive committee overlapped. In the parent holding company, two independent directors were included to meet stock market guidelines but had little/weight against the family. TPI did not disclose detailed information on its debt.

    When the crisis struck, it emerged that TPI owed US$3.2 billion in external debt to some four hundred creditors. In 1997, the group made exchange losses of Baht 14.5 billion. All expansion plans were put on hold, and TPI entered into acrimonious negotiations with its creditors. In an attempt to retain control, Prachai put both the holding company and the cement firm, TPI Polene, into the bankruptcy court in 2000. Over the next five years, Prachai used lawsuits, political connections, public advertising, and nationalist posturing in his attempt to retain control. However, in a bankruptcy court ruling in 2005, the state-owned petroleum corporation PTT became the major investor in TPI with a 30 percent stake and the family was reduced to a 15 percent minority. Subsequently Prachai and his siblings were ejected from the board, and the company paid its first dividend since the crisis. By using similar tactics, the family retained fragile control of the cement company, but at the cost of it remaining mired in debt.

    TPI suspended repayment of principal and interest on its US$3.2 billion in debt owed to 148 local and foreign creditors following the Asian Financial Crisis. TPI's creditors included International Finance Corporation, Citibank, and Bank of America. Prachai refused to declare insolvent. The case continues to be one of Thailand's longest and most controversial bankruptcy cases.[2][3]

    Prachai Leophairatana and his family now are the board members of the TPI Polene Public company limited, which recently was just released from rehabilitation plan on Tuesday, 11 April 2006, and receive profit ever since. [1]

    An outspoken critic of Thaksin Shinawatra, Prachai was a major funder of the People's Alliance for Democracy and joined Snoh Thienthong's Pracharaj Party as its secretary-general prior to the coup that overthrew Thaksin's government.[4]

    en.wikipedia.org

  5. #5
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    So, the PAD/dem (dissolution case) funders gonna get TPI back? Couldn't get more corrupt, if it goes that way...

    & MrT is the corrupt one.

  6. #6
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    Bangkok Post : Democrats: DSI not working for us


    Democrats: DSI not working for us



    The Department of Special Investigation (DSI) is not working for the Democrat Party as claimed by the opposition, Democrat MP for Songkhla province Wirat Kalayasiri said on Tuesday.


    The opposition Puea Thai Party accused the DSI of siding with the Democrats after it decided to drop charges of violating the Securities and Exchange Act against TPI Polene. The firm allegedly paid 263 million baht to an advertising agency - Messiah Business and Creation - to create advertising material for Democrat candidates during the 2005 election campaign.

    "The DSI is not helping the Democrats. Many DSI officials began their jobs when the Thai Rak Thai and People Power parties were in office," Mr Wirat said.

    He said his party's legal team will consider whether DSI director-general Tharit Pengdit will be a witness in the Democrat dissolution case.


    DSI chief Tharit Pengdit



    The legal team will discuss the issue before July 28, he added.
    "Slavery is the daughter of darkness; an ignorant people is the blind instrument of its own destruction; ambition and intrigue take advantage of the credulity and inexperience of men who have no political, economic or civil knowledge. They mistake pure illusion for reality, license for freedom, treason for patriotism, vengeance for justice."-Simón Bolívar

  7. #7
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    I’m afraid people are getting 3 separate cases mixed up here.

    The OP is about Thaksin’s involvement in a 2003 Bankruptcy Court decision that [almost] ended some 5 years of tortuous litigation in the TPI bankruptcy with PTT being able to buy 30% interest in TPI and gaining management control. The have since renamed it IRPC and continue to run it as a subsidiary of PTT. Prachai is still litigating. Note the background case Mid posted is not that hearing.


    The other two cases involve TPI Polene, at one time a subsidiary of the larger TPI conglomerate that Prachai was able to maintain control of and is all that remains of what was once a multi billion dollar empire. In 2005, he is alleged to have siphoned money from TPI and illegally donated it to the Democratic Party through thousands of small transactions and proxies. One case is Prachai took money out of a publicly listed company violating SET regulations, the other is the Democrats receiving the money violating campaign laws.
    TH

  8. #8
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    The whole story against Thaksin is two bankrupt crooks, Sondhi and Prachai, who couldn't accept their fate.

    Sad story.

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    And, I almost forgot, a weasel who decided to turn a blind eye because he knew he could never won an election on his own.

  10. #10
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    Quote Originally Posted by Thaihome
    I’m afraid people are getting 3 separate cases mixed up here.
    Spin all you like, spin, spin spin... but people see through your non-stop SPIN, and the facts remain the same for people that check by themselves; back to ASTV101 spinclass for you...

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    How is explaining that there are 3 seperate cases being dicussed in this thread spining anything?


    TH

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    Quote Originally Posted by Thaihome
    How is explaining that there are 3 seperate cases being dicussed in this thread spining anything?

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