https://www.google.com.sg/amp/s/fin...-crash-surprise-default-035011952.html?espv=1
Any miss-the-boat stories?
Any miss-the-boat stories?
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Siam Kia Stark Industry imploded on massive 1.1b debt
- Thread starter k1976
- Start date
“Stark’s incident certainly had an impact on investors’ confidence as they’re now adopting a very cautious approach on investment decisions. They are less certain on which companies have good or bad governance,” said Niwes Hemvachiravarakorn, investor and founder of Thai Value Investor Club. “Stark was being audited by one of the world’s top accounting firms, but the auditors couldn’t catch the irregularities before they imploded.”
Stark’s origins go back to 1990, when it was founded as a comics publisher and distributor called Siam Inter Multimedia Pcl. It changed its name to Stark Corp. Pcl in 2019 about a year after Vonnarat Tangkaravakoon, a businessman from one of Thailand’s wealthiest families, acquired majority control of the company. As of October, Vonnarat was the biggest Stark shareholder with a 45% stake, according to data compiled by Bloomberg.
Vonnarat transformed the media and publishing company into a manufacturer of electrical wires and components through the acquisition of cable maker Phelps Dodge International (Thailand) Ltd., originally the Thai operations of US-based Phelps Dodge International.
Vonnarat transformed the media and publishing company into a manufacturer of electrical wires and components through the acquisition of cable maker Phelps Dodge International (Thailand) Ltd., originally the Thai operations of US-based Phelps Dodge International.
Now 51, he is the eldest son of Prachak Tangkaravakoon, who founded TOA Paint Pcl, Thailand’s largest paint maker. Vonnarat was executive director at Toa from 1998 until his resignation last month. He also held a 9% stake in TOA, according to its website, although the company denies any relationship with Stark in terms of investment or management.
Under Vonnarat, Stark continued its rapid growth through acquisitions, including industrial products businesses in Vietnam. In May last year, it announced a €560 million deal to buy Leoni Business Group Automotive Cable Solutions, a German maker of automotive cable solutions, its first major expansion outside Asia. He has not replied to Bloomberg’s queries to his representative at Stark.
Under Vonnarat, Stark continued its rapid growth through acquisitions, including industrial products businesses in Vietnam. In May last year, it announced a €560 million deal to buy Leoni Business Group Automotive Cable Solutions, a German maker of automotive cable solutions, its first major expansion outside Asia. He has not replied to Bloomberg’s queries to his representative at Stark.
For most investors, the first sign of trouble was in December, when Stark announced that it was backing out of the Leoni deal. While the company raised 5.58 billion baht from investors including Credit Suisse and HSBC Holdings Plc to finance the deal, it said it wanted use the money for other purposes. Leoni AG and Leoni Bordnetz-Systeme GmbH demanded €608 million in compensation.
In February, its chief executive officer suddenly resigned, citing personal reasons. Later that month, the company said it would miss a March 1 deadline for filing its financial statement, citing “some information” being reviewed by its auditor. The shares were suspended, and its Chairman Chanin Yensudchai and other board members soon resigned.
In February, its chief executive officer suddenly resigned, citing personal reasons. Later that month, the company said it would miss a March 1 deadline for filing its financial statement, citing “some information” being reviewed by its auditor. The shares were suspended, and its Chairman Chanin Yensudchai and other board members soon resigned.
Accounting Scandal
By the time Stark asked its investors in late May to waive a further delay of its financial statement, mistrust ran high. Investors of two bonds worth a combined 2.24 billion baht sought immediate payment of the principal and interest. Stark’s shares plunged 92% on June 1, their first day of trading after having been suspended for more than two months.
It also led to a cross default on the company’s other bonds and loans.
Most investors learned the extent of Stark’s problems on June 16 when it finally released its financial statements, which showed a net loss of 6.61 billion baht for 2022, after a restated 5.97 billion baht loss for 2021.
The company, which originally reported a profit of 2.78 billion baht for 2021, said it identified “multiple errors” in earlier statements. At the same time, it revealed details of a special audit conducted by PricewaterhouseCoopers, which found various irregularities.
Among the findings were 202 “unusual sale transactions” worth 8 billion baht in 2022 and 3.59 billion baht in 2021. They included fake “payer names and payments on behalf of customers from accounts of the company’s former officers.”
By the time Stark asked its investors in late May to waive a further delay of its financial statement, mistrust ran high. Investors of two bonds worth a combined 2.24 billion baht sought immediate payment of the principal and interest. Stark’s shares plunged 92% on June 1, their first day of trading after having been suspended for more than two months.
It also led to a cross default on the company’s other bonds and loans.
Most investors learned the extent of Stark’s problems on June 16 when it finally released its financial statements, which showed a net loss of 6.61 billion baht for 2022, after a restated 5.97 billion baht loss for 2021.
The company, which originally reported a profit of 2.78 billion baht for 2021, said it identified “multiple errors” in earlier statements. At the same time, it revealed details of a special audit conducted by PricewaterhouseCoopers, which found various irregularities.
Among the findings were 202 “unusual sale transactions” worth 8 billion baht in 2022 and 3.59 billion baht in 2021. They included fake “payer names and payments on behalf of customers from accounts of the company’s former officers.”
https://www.google.com.sg/amp/s/fin...ance-chief-seeks-speedy-022618189.html?espv=1
Thai give send in their elite damage control team liao
Thai give send in their elite damage control team liao
A quick resolution to the Stark is important “to rebuild investors’ confidence,” Arkhom said late Thursday. The SEC and the exchange were also ordered to improve their supervision of listed companies to quickly detect any irregularities, he said.
The Department of Special Investigation has agreed to investigate allegations of fraud by some of its former executives, Bangkok Post reported, citing Director-General Suriya Singhakamol. There is evidence suggesting Stark’s executives violated Securities and Exchange Act, the newspaper reported.
The Department of Special Investigation has agreed to investigate allegations of fraud by some of its former executives, Bangkok Post reported, citing Director-General Suriya Singhakamol. There is evidence suggesting Stark’s executives violated Securities and Exchange Act, the newspaper reported.
Nabei what Stark Industry sounds like AMDK.
https://thethaiger.com/news/busines...mid-political-uncertainty-and-export-downturn
Thai industry confidence already taking hit from the new gov forming delay
Thai industry confidence already taking hit from the new gov forming delay
Copee from Ironman
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