Thailand Industrial Land Firm Is Poised to Realise a Profit.

Byline: Busrin Treerapongpichit

Oct. 2--Amata Corporation Plc, the developer of Bang Pakong Industrial Estate, expects to be debt-free and to begin making profits by the end of this year after a four-year process of debt restructuring.

Chief executive Vikrom Kromadit said the company aimed to clear the final 400 million baht in debts this year.

When the 1997 financial crisis struck, Amata had total debts of three billion baht incurred from loans to buy land and develop infrastructure. As it became increasingly difficult to sell industrial land, the company stopped servicing its loans.

In subsequent debt-restructuring negotiations, creditors had agreed to write down 400 million baht, Mr Vikrom said.

The company bought back a portion of the debts from the Financial Sector Restructuring Authority and rescheduled repayments of 70 million baht over a five-year period from 2000 to 2004.

As well, the company gradually sold off non-core assets, such as shares held in other businesses and some of its land bank, to ease the burden until its outstanding debts dropped to the current level of 400 million baht.