SET Announcements

= Translation = Ref: CK-10-000-AFD(AC)-L-0017 11 March 2010 Subject: Declaration of Progress of Loans with Interest and Long-Term LoansRepayment to Bangkok Metro Public Company Limited Attention: President The Stock Exchange of Thailand Ref: 1) The Company's Letter No.CK-07-0000-AFD-L-0226 dated 25 April 2007 2) The Company's Letter No.CK-07-0000-AFD-L-0164 dated 29 May 2007 3) The Company's Letter No.CK-07-0000-AFD-L-0297 dated 27 December 2007 4) The Company's Letter No.CK-07-0000-AFD-L-0584 dated 28 December 2007 5) The Company's Letter No.CK-08-0000-AFD-L-0083 dated 25 December 2008 6) The Company's Letter No.CK-09-0000-AFD-L-0075 dated 1 June 2009 7) The Company's Letter No.CK-08-0000-LAW-L-0082 dated 2 July 2008 Dear Sir, Reference is made to the fact that CH. Karnchang Public Company Limited "Company" has issued a declaration letter of the additional information of the consolidated financial statements ended 31 March 2009 on loans in item 11 in proportion to the company's interest in the joint-venture and another letter declared on the active transactions period according to the plan as the above-mentioned letter. As there have been the loan transaction between Modern Construction Material Company Limited with Joint Venture CKAE Consortium and between Bangkok Concrete Industry Company Limited (Subsidiary) "BCI" with CH. Karnchang Public Company Limited the Company which is totally due to pay back within 30 June 2009. Thus, the Company hereby declares on the additional active transactions as follows: 1) Joint Venture CKAE Consortium Group as formerly planned to receive a totaled loans repayment within no later than 31 December 2008. The Board of Directors of CH.Karnchang Public Company Limited had approved on 24 December 2008 for the Company on behalf of CKAE Consortium to extend on the schedule of period for loan receivable repayment to the borrower's company in accordance with repayment plan as proposed by the borrower's company namely Modern Construction Material Company Limited hereby extend on the schedule of period for a whole of loan receivable repayment from former schedule as planned within 31 December 2008 as to pay all of loan by 30 June 2009 of which such sum had beentotally repaid already due to the terms. However, Best Plan Technology Company Limited "BPT" has requested to extend its loan repayment from former schedule which had to pay a whole of loan within 31 December 2008 as requesting for extended period to change to gradually repay of the principal and its accrued interest in each quarter totaled 8 installments from 31 March 2009 until 31 December 2010 as the followings. Unit : Million Baht Best Plan Technology Co., Ltd. Principal Interest First loan 24.5 - Loans during first loan-end of 2006 239.7 84.7 Receivable repayment during first loan-end of 2006 (54.5) (19.8) Balance as of 31 December 2006 209.7 64.9 Interest during the period of January to December 2007 - 45.6 Repayment during the period of January to December 2007 - (65.3) Balance as of 31 December 2007 209.7 45.2 Interest during the period of January to December 2008 - 19.9 Repayment during the period of January to December 2008 - (13.1) Balance as of 31 December 2008 209.7 52.0 Interest during the period of January to March 2009 - 4.9 Repayment during the period of January to March 2009 - (3.6) Balance as of 31 March 2009 209.7 53.3 Interest during the period of April to June 2009 - 4.8 Repayment during the period of April to June 2009 (19.6) (11.9) Balance as of 30 June 2009 190.1 46.2 Interest during the period of July to September 2009 - 4.2 Repayment during the period of July to September 2009 (25.3) (15.7) Balance as of 30 September 2008 164.8 34.7 Interest during the period of October to December 2009 - 3.8 Repayment during the period of October to December 2009 (15.5) (10.3) Balance as of 31 December 2009 149.3* 28.2 Remark:*Best Plan Technology Company Limited had repaid for the principal with its interest for 17.98 million baht in December 2009 according to the terms (due to the proportion of the Company's consortium). As BP had repaid for the principal with its interest by post dated cheque. 2) Joint Venture CKET Consortium as formerly planned will receive at least a half of loans repayment within no later than 31 December 2008 and the rest would be paid totally within 30 June 2009. Therefore, as the economic situation of the country has been effected from the political situation inside country which including the very low economic impact that enable the business operation of Private Inter Construction Company Limited to get not enough income that can make a repayment for debt as scheduled. In addition, Rayong Real Estate Company Limited should delay its development on the project of real estate and golf course, resort, accommodation so that "RY" therefore is unable to operate its service as planned, however, "RY" has already made of business operation plan and repayment of debt proposed to the joint venture to express its ability as to gradually repay for loan and the Joint Venture CKET Consortium thus has carefully ceased recognition on interest from the aforesaid borrower's company since 1 July 2008 and will recognize upon only having paid of interest according to cash basis. In the meantime value of security for such debt has been a number of lands and buildings whereby have been appraised by the independent appraiser totaling 1,588.9 million baht (in proportion to the Company's interest in the joint venture) that have been valued closely to the debt. Moreover, Rayong Real Estate Company Limited "RY" had already informed of its progress of the operation for RY's immovable property development project named Wangjuntr Golf Park project which located at 129, Moo 6,Tambol Pa Yoob Nai, Amphur Wang Chan, Rayong Province. This project had been planned to develop to be a golf course with 54 holes divided into 3 phases including club house as well as lodging and resort of which to be sold for members and also sell some parts of land in the future. However, as the public utility development plan approaching to the government sector has not yet reached its target, such development had been therefore delayed and enabled the project to be not completed entirely. At present, this project had been in the process for the specialist to have a course test for some parts especially Phase I and Phase II zones of golf course as to prepare for its readiness and must take some time for an official opening for the whole project. Consequently, the land development procedure in construction of Golf Course, Resort, Golf Club and immovable property development of the premium grade had been sold out of those buildings which had been already completed approximately 58 %.However, there have not yet had any income from the golf course development at present and there also have not had any further progress until now. The Board of Directors of CH.Karnchang Public Company Limited had approved on 24 December 2008 for the Company on behalf of CKET Consortium, to extend on the schedule of period for loan receivable repayment and the account receivable for the construction contract's debt to the borrower's company in accordance with repayment plan as proposed by the borrower's Company namely Rayong Real Estate Company Limited "RY" and Private Inter Construction Company Limited "PIC" had requested for extension of its loan repayment from the former schedule which had to pay a half of remaining loan within 31 December 2008 and would pay a whole of loan within 30 June 2009 as changed to gradually repay of the principal in each quarter totaled 23 installments whereby will repay for the obligation of principle beginning from March 2009 until September 2014 and will repay for accrued interest in September 2014 and December 2014 and March 2015. For the construction contract debt in the amount 325.7 million baht, it had to pay in each quarter totaled 13 installments whereby will begin from September 2009 and will repay totally by December 2012. Hence, the construction transaction of debtor for September 2009 that Rayong Real Estate Company Limited must repay according to the conditions for the amount of 5 million baht (in proportion to the Company's consortium). As Rayong Real Estate Company Limited has paid for totaled amount by post dated cheque within November 2009 that summarized on progress for loan repayment as the followings. Loans according to the Agreement for Additional Terms of Loans Contract Unit : Million Baht Rayong Real Private Inter Estate Co., Ltd Construction Co.,Ltd. Principal Interest Principal Interest First loan 152.0 - 160.0 - Loans during first loan-end of 2006 1,048.0 231.9 44.0 29.9 Receivable repayment during first loan-end of 2006 (79.1) (25.6) (60.6) (12.1) Balance as of 31 December 2006 1,120.9 206.3 143.4 17.8 Interest during the period of January to December 2007 - 143.5 - 18.3 Repayment during the period of January to Cecember 2007 - (185.0) (0.7) (34.0) Balance as of 31 December 2007 1,120.9 164.8 142.7 2.1 Interest during the period of January to Cecember 2008 - 48.4 - 6.1 Repayment during the period of January to Cecember 2008 - (25.6) - (2.4) Balance as of 31 December 2008 1,120.9 187.6 142.7 5.8 Interest during the period of January to March 2009 - - - - Repayment during the period of January to Mach 2009 - - - - Balance as of 31 March 2009 1,120.9 187.6 142.7 5.8 Interest during the period of April to June 2009 - - - - Repayment during the period of April to June 2009 (4.0) - (1.6) - Balance as of 30 June 2009 1,116.9 187.6 141.1 5.8 Interest during the period of July to September 2009 - - - - Repayment during the period of July to September 2009 (8.0) - (4.8) - Balance as of 30 September 2009 1,108.9 187.6 136.3 5.8 Interest during the period of October to December 2009 - - - - Repayment during the period of October to December 2009 (4.0) - (2.4) - Balance as of 31 December 2009 1,104.9 187.6 133.9 5.8 Accounts Receivable from Construction Works (Wangjuntr Golf Park) according to the Agreement for Additional Terms of Loans Contract Unit : Million Baht Trade accounts receivable as at 31 December 2008 325.7 Repaid on September 2009 (5.0) Trade accounts receivable as at 30 September 2009 320.7 Repaid on December 2009 (5.0) Trade accounts receivable as at 31 December 2009 315.7 3) As the Company has already notified to sell the ordinary shares of Bangkok Concrete Industry Company Limited (Subsidiary) "BCI" to Widen Holding Company Limited as referred to 3) that had been scheduled to receive repayment completed within June 2009. In September, BCI had transferred the land, buildings and machineries as for debt repayment of loans from the Company and account receivable to related parties. Therefore,the result of such transfer enabled the Company recorded for reversal amount approximately Baht 38 million to income in the separate income statement for the current period by using the land independent appraiser for price agreement. For the remaining construction debt, Widen Holding Company Limited has been a guarantor for the Company.Thus, the Company hereby notifies for additional information concerning the loans and the construction debt burden of BCI as had dealt with the Company as of 30 September 2009 as followed. 4) As referred to 7,the Company has notified on the sponsor support to Bangkok Metro Public Company Limited for the amount of Baht 3,000 in accordance with Sponsor Support Agreement and had always disclosed information in the Company's financial statement. Thus,SET has requested for additional disclosure in Remarks Item 3 "Business transaction with related party; Sub-Item : Long-term loans given to associated company and its accrued interest including transactions accessed through ELCID. Therefore, the Company hereby notifies for transaction information of the aforesaid as are followed. Unit : Million Baht Loans - Bangkok Metro Public Co., Ltd. Principal Interest Balance as of 31 May 2008 (as referred to 7) 1,203.09 174.94 Loans and Interest during the period of June to December 2008 380.00 63.62 Balance as of 31 December 2008 1,583.09 238.56 Loans and Interest during the period of January to Mach 2009 200.00 30.56 Balance as of 31 Mach 2009 1,783.09 269.12 Loans and Interest during the period of April to June 2009 100.00 30.71 Balance as of 30 June 2009 1,883.09 299.83 Loans and Interest during the period of July to September 2009 140.00 32.88 Balance as of 30 September 2009 2,023.09 332.71 Loans and Interest during the period of October to December 2009 160.00 35.80 Balance as of 31 December 2009 2,183.09 368.51 Hence, kindly please be informed accordingly. Yours faithfully, = Signature = (Mr. Vorapote Uchupaiboonvong) Executive Vice President : Accounting and Finance