Bangkok Land misses US$4.47m Eurobond payment

Bangkok Land, controlled by the Hong Kong-Thai Kanjanapas family and the developer behind an ambitious copy of Hong Kong's Sha Tin satellite city on the northern outskirts of Bangkok, missed a US$4.47 million interest payment on a Eurobond yesterday, according to debt market sources.

The firm, part of an empire which also includes Hong Kong-listed Stelux Holdings, delayed payment on the US$150 million bonds when they fell due a month ago but was given 28 days' grace.

Last night Stelux, which owns 10.6 per cent of Bangkok Land, issued an announcement in response to reports suggesting the Thai company had missed the payment and had until November 10 to meet it.

It said it had received a letter from Bangkok Land which confirmed the missed payment and said the company had notified holders of the notes that 'because of the unusually tight liquidity situation in Thailand, Bangkok Land has encountered delays in its anticipated incoming cash flow'.

Bangkok Land has, according to Stelux, discussed the matter with its trustee bank and certain noteholders and that as at November 7, there was no indication suggesting noteholders would reject a request for a delay in payment.

Bangkok Land has been in difficulties for several years, with customers proving slow in buying units in the serried ranks of Hong Kong-style apartment blocks on the edge of Bangkok.