Loan Delay Forces Thai Petrochemical to Revise Revenue Targets.

Jul. 25--The long delay in obtaining US$80 million in working capital has led Thai Petrochemical Industry to revise its oil refining and revenue targets.

But company executives insist that the firm can complete its business rehabilitation in the four-year timeframe. "We have made slow progress mainly because of a shortage of working capital which TPI badly needs to buy additional crude to boost its oil production," said Tongchat Hongladarom, TPI's president.

Last month, Mr Tongchat was appointed to head the petrochemical giant by Effective Planners, administrator of the company's restructuring plan.

He said he was confident of securing $200 million in loans as working capital to boost oil refining to 120,000 barrels a day, about half the capacity. TPI now refines about 65,000 barrels a day.

Mr Tongchat said the six-month delay in implementing the restructuring plan had affected operations and production targets.

The firm had originally planned to receive a loan of $80 million from creditors to buy crude oil to raise refining to 80,000-90,000 barrels a day in the first half of this year and 120,000 barrels a day in the second half.

TPI's 140 domestic and foreign creditors had agreed in principle to the loan. But funds had not yet been received, with the delay attributed to difficulties in co-ordinating the creditors.