TPI Oil Co Ltd, managed by the Leophairatana family, and another five subsidiaries of Thai Petrochemical Industry Plc (TPI), yesterday said they would forge ahead and operate their businesses though they have no backing from the parent firm.

Prachai Leophairatana, chief executive officer of TPI's six subsidiaries - including TPI Oil - explained the company's non-payment of debts of about Bt2 billion, which has caused TPI to stop its oil supply to the unit. He said TPI also owed Thai ABS, another TPI subsidiary, more than Bt3.8 billion.

He added that being the CEO of six companies, he had to manage the cash flow of them all. "It's necessary to be overdue on debts for oil so we can use the money as working capital for all six subsidiaries," said Prachai.

Piti Yimprasert, CEO of TPI, said TPI Oil was a different entity from TPI ABS, and one company's debts should not therefore be offset by another unit. The funds that TPI owes TPI ABS are normal commercial loans, he said.

"If Prachai manages the companies as a professional there will be no trouble. Everything should go smoothly because TPI is ready with support," said Piti, adding, "TPI will manage all the subsidiaries itself if Prachai causes problems."

Prachai believes that in these circumstances there should be someone to take over all

the businesses under the empire

of TPI. He said that after PTT Plc - in cooperation with the Gov-

ernment Saving Bank, the Government Pension Fund, and the Vayupak Fund - became new shareholders in TPI, there was an immediate  capital gain of Bt60 billion.

He said TPI Oil would however schedule a board meeting to elect new board members within 30 days, as requested by TPI.

Prachai, founder of TPI, is in the process of being removed from the TPI board by new shareholders led by state-owned PTT.

The six units and affiliated companies of TPI, including TPI Oil, reverted to the control of boards controlled by Prachai's family upon TPI's withdrawal from rehabilitation.

Watcharapong Thongrung

The Nation