WASHINGTON, D.C., February 19, 1999 — The International Finance Corporation, the Export-Import Bank of the United States and Thai Petrochemical Industry Public Company Limited (TPI) are pleased to announce that they have resolved outstanding differences over the terms of TPI's debt restructuring, allowing the company to set in place a plan that all parties hope will ensure the company's prosperity.
IFC holds approximately 15 percent of the company's debt, for its own account and for the account of 41 B-loan participants. Ex-Im Bank holds approximately 3.5 percent of the TPI's debt in the form of direct loans. TPI, one of Thailand's biggest industrial groups, has been seeking agreement amongst its creditors for a $3.2 billion financial restructuring plan.
Following a meeting of TPI's creditors in December, IFC and Ex-Im Bank had continuing concerns with some elements of the restructuring plan and were unable to support it. Since then, TPI, its financial advisers The Chase Manhattan Bank, Ex-Im Bank and IFC have held lengthy discussions to reach agreement. IFC will now recommend the revised plan to the participants in its B-loan and to its Board of Directors.
TPI and its advisers will work with its informal steering committee of financial creditors to document and put the restructuring into effect as soon as possible.
