Thailand: IFEC to sell some of its assets, look for partners

Thailand: IFEC to sell some of its assets, look for partners

SET-listed Inter Far East Energy Corporation Plc (IFEC), a renewable power
company, is in talks to sell some of its assets and stakes in a biomass
power plant and wind farm to raise cash to pay defaulted debts, says
chairman Wichai Thavornwattanayong.

The company also plans to seek partners to develop renewable energy projects
overseas to gain more revenue after clearing up its debt issues. It expects
total revenue this year to reach 500-600 million baht.

IFEC may also sell its wholly owned Dhara Dhevi Hotel in Chiang Mai
province, expecting to reap 4.5 to 5 billion baht from the move to help
strengthen the company's financial status.

The company is in talks to sell 49-50% of its shares in the biomass project
to an investor willing to partner with IFEC in development.

"We are about to sell a 30% stake in our wind farm business to Goldwind, and
we expect to earn around 1 billion baht in that deal," Mr Wichai said.
Goldwind International Holdings is a Chinese company that is the world's
leading producer of wind turbines.

IFEC has struggled recently to pay debts, forcing the company to default on
some of its bills of exchange (B/Es) due late last year. It is expected to
default on some other debts this month.

IFEC defaulted on its debt for the second time in less than a month in
January after failing to pay 200 million baht in B/Es owed to Solaris Asset
Management Co Ltd.

Earlier, IFEC defaulted on 100 million baht of B/Es owed to LH Fund, a
subsidiary of Land & Houses Plc, the SET-listed property developer, that
were due in December 2016.

Mr Wichai said IFEC also plans to partner with venture capital specialists
Ploenchit Capital and Mercury Fund to strengthen the company's investment
strategy after solving its defaults.

"Our partnership is very strong as we have partners who are specialists in
financial issues, debt management and technology," he said.

The company is also considering a plan to join with partners to invest in
Asean-Bangladesh wind farm projects after resolving all of its debt
problems.

As IFEC's projects are projected to generate more revenue this year, Mr
Wichai said he is confident revenue will reach 500-600 million baht in 2017.
The figure is expected to rise further in coming years, he said.

IFEC shareholders are due to meet again on Feb 14 to approve the debt
management plan as well as produce a clear direction on the issue of company
leadership after a group of major shareholders proposed in a Jan 25 meeting
to give themselves seats on the executive board to help resolve the
company's debt defaults.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1194733/ifec-to-sell-some-of-its-as
sets-look-for-partners

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com