WASHINGTON, D.C., December 28, 1998 – The International Finance Corporation wishes to clarify its position as a creditor of Thai Petrochemical Industry (TPI) in light of a number of misleading newspaper reports that have appeared since the TPI general creditors meeting on Dec. 3.
IFC has been part of the negotiations with TPI concerning the company's $3.2 billion debt restructuring plan. IFC's loan represents approximately 15 percent of the company's debt, and is held by IFC for its own account and for the account of 41 B-loan participants. IFC has maintained that it has no desire to liquidate the company and believes that every reasonable effort must be made to keep TPI operating as a going concern.
IFC has striven to find consensus by working with other creditors on TPI's restructuring steering committee. Following the creditors meeting three weeks ago, IFC submitted the requirements that would allow it to support the proposed restructuring of TPI, while accommodating the concerns of the company and other creditors. The requirements reflect an evolution of IFC's original position, including a major concession on IFC's part, to give up the demand for unilateral right to accelerate the loans in the event of serious default.
Several major creditors have expressed full support for the requirements set out by IFC; and other creditors have submitted their own conditions for agreement to TPI's restructuring plan. It is now for the company's majority shareholders to decide whether or not they want to reach an agreement on a restructuring plan for TPI.
For further information, please contact Carlos Tan at (202) 473-8817.
