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Troubles at Thainox Stainless ignite rumours.

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| March 01, 2005 | COPYRIGHT 2005 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Thai Press Reports)

Section: Commentary - The scandal at Thainox Stainless, the country's only stainless-steel maker, remained the talk of the town after Vichukorn Prapansiri, managing director and board member, resigned on Wednesday, The Nation reports.

The company has come under investigation by authorities into its transparency in recapitalising, prompting experts to warn retail investors to be careful in investing in the company's stock, even though trading has been suspended since February 17.

Vichukorn's departure followed Monday's resignation of Suvarn Valaisathien, a director and chairman of the audit committee. The two top executives were preceded by the exodus of much of upper-tier management over recent months.

The market was shocked last week by Thainox Stainless' disclosure of a Bt14-billion hot-rolled coil plant project to be financed by issuing up to two billion common shares and two billion warrants - just two months after it had gone public. Its offering prospectus made no mention of an investment plan of this massive scale.

The Securities and Exchange Commission (SEC) has demanded full clarification from Thainox.

Thainox's stock last closed at Bt2.02 before its suspension. Last week, SEC secretary-general Thirachai Phuvanat-naranubala threatened to take legal action against ...

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