During a chaotic meeting yesterday, shareholders of Thai Petrochemical Industry Plc approved the appointment of 15 new board members, including representatives from its new partners led by PTT Plc.

Company founder Prachai Leophairatana, who remains as a director, made his presence felt yet again at the start of the meeting, which was held after the Central Bankruptcy Court on Wednesday approved the company's exit from debt rehabilitation after almost six years.

Before the meeting started, Prachai, voted as chairman of the company on Wednesday by the old board he controlled, took the lectern to tell the assembled shareholders about his new position. The microphone was turned off, leaving him shouting his speech.

"After TPI exits the plan, the original management can resume their jobs. The plan administrator hosted this meeting, knowing that it is illegitimate," he hollered at the audience. After 20 minutes of negotiations, he was escorted by police officers out of the meeting room.

While on stage, Prachai flashed a Nonthaburi court order that bars the Finance Ministry from hosting the shareholders meeting.

Accompanying Prachai were 1,500 employees who hold proxies. More than 1,000 soldiers and police officers were positioned at the Air Force Hall where the meeting took place to prevent any problems. All who attended the meeting had to be screened at three levels.

"This meeting is legitimate. The Nonthaburi Court's order is directed at the Finance Ministry. But this meeting is hosted by TPI, which has every right to do so after the approved exit from the rehabilitation plan," said Julasing Wasantasing, deputy attorney general, who chaired the meeting yesterday.

"We held the meeting under the temporary clause that after the exit. There must be a shareholders' meeting to appoint new directors to complete the 25-member board. After we have all the directors, the temporary clause ends. Tomorrow, the new board will hold an urgent meeting to appoint a chairman and president," he added.

The new directors will be immediately registered with the Commerce Ministry. Regarding the 10 directors appointed by the Prachai-led board - who include Prachai's wife Orapin and several members of his family - the Commerce Ministry will decide which appointments are legitimate, he said.

The new directors' appointments were completed in less than an hour. A total of 1,275 shareholders were present at the meeting, holding a combined stake of 65.83 per cent of the company's 12.8 billion outstanding shares.

Among the new board members are representatives from TPI's new partners - PTT president Prasert Bunsumpun, former PTT vice president Piti Yimprasert, and Government Pension Fund secretary-general Visit Tantisunthorn. Former finance minister Virabongsa Ramangkula was also appointed to the new board. Members of TPI's court-appointed debt-plan administration team - Mongkol Ampornpisit, Pakorn Malakul Na Ayudhya and Pala Sookawesh - are also to get seats on the new board.

Mongkol, previously chairman of TPI's administrative team, said the board would nominate Piti as the company's new president at a board meeting on Friday. Mongkol is widely tipped to become the company's chairman.

"After the exit, TPI will resume its starring position, with the possibility of becoming Southeast Asia's largest petrochemical company," said Mongkol.

Piti said that the management would first focus its attention on refinancing US$970 million (Bt29.7 billion) in debt.

"Our target is to reduce the number of foreign creditors to three or four, for management flexibility. Right now, the operations need approval from too many creditors," he said.

He said the exit would raise the company's profile, which will support Bt10 billion in new investments over the next three years. TPI needs to improve its pier and refinery as well as increase the output and quality of its products.

TPI also plans to buy back a $200-million loan at a discount. Piti said that an 8-9 per cent discount should be acceptable, and that if all proceeds as planned, the company's outstanding debts would be reduced to $700 million at the end of this year.

Under TPI's now completed rehabilitation plan, the company sold new shares to new partners in order to raise funds for repaying debts. It also sold non-core assets to pare down the company's debt to $950 million from $2.65 billion. State-owned oil and gas conglomerate PTT bought a controlling 31.5 per cent stake in TPI, and its partners in the restructuring plan - the Government Savings Bank, the Government Pension Fund, and the state-run Vayupak Fund-One - each bought a 10 per cent stake. Existing minority shareholders and creditors purchased 28.5 per cent via underwriters.

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