Thai Property Firm to Streamline for Stronger Footing.

Byline: Krissana Parnsoonthorn

Jul. 8--After completing its 14-billion-baht debt restructuring in March, property developer Krisda Mahanakorn Plc (KMC) is preparing to find strategic partners to help it resume building a sound operation.

KMC also planned to clear accumulated losses of around six billion baht, reduce its share par value and then exit its rehabilitation plan by early next year, said Rachada Krisdathanont, senior executive vice-president.

"We have discussed partnership deals [to invest in new projects] with some foreign companies. They are very interested in working with us but we must improve the company first," he said.

KMC expects to report an operating profit this year, the first in four years. It has a pre-sales target of 1.5 billion baht for the year, up from one billion baht last year. Pre-sales are forecast to rise to three billion baht in 2004.

In the first quarter, KMC posted a net profit of 549.17 million baht, on revenues of 1.25 billion baht. Pre-sales in the first half are estimated at 800 million baht.

After the restructuring, its debt burden has declined to 6.2 billion baht with a seven-year repayment period. Four creditors -- Thai Asset Management Corp, Asset Management Corp, Krung Thai Bank and Bangkok Bank -- will hold a 40 percent stake in the firm following debt-for-equity swaps, with the Krisdathanont family's holdings to be diluted to 10 percent.