Bank consortium offers new loans to garment factory
Thai News Agency MCOT, Thailand
BANGKOK, July 21 (TNA) – Several banks which had earlier provided loans to the Thai Silp South East Import Export Co. have offered to extend additional funds to the debt-ridden garment factory which recently declared its intention to go out of business early next month.
Kasikorn Bank vice president Boonthak Wangcharoen said executives of the Thai Silp garment factory’s creditor banks, namely Bangkok Bank, Bank of Ayudhya, Siam Commercial Bank, HSBC and the Kasikornbank, had met together and agreed to give more loans for the factory, despite its management’s decision to go out of business in the face of a Bt1.4 billion loss.
About 6,000 employees of the troubled factory have become jobless due to the unexpected shutdown of the factory in Samut Prakan’s Bang Phli district.
However, the creditor banks preferred the garment factory reopen shortly so that those employees could come back to work though an exact amount of new bank loans to provide is yet to be specified at a later date pending consideration on the company’s business plan, according to Mr. Boonthak.
The Labour Ministry had earlier pledged to help find jobs for the unemployed factory workers who are yet to receive overdue wages and severance pay.
The shutdown of the Thai Silp factory, known to have been run as a traditional family style business, had taken the creditor banks by surprise, the senior banker added. (TNA)-E008
