Debt-burdened property developer Krisdamahanakorn Plc has announced it will launch four new property projects worth Bt3.5 billion by year-end following the successful restructuring of debts amounting to Bt15 billion.

The company also expects to write off accumulated losses of Bt3 billion before the end of the year.

Managing director Tanade Singkalvanich said the company's board would be given three options next month as to how the accumulated losses can be written off.

They are increasing the company's registered capital, reducing its par value, or selling land to generate income.

"We cannot say which option our board will choose to solve our financial problems, but this way will have a lesser negative impact on shareholders," he said.

Tanade said the company had succeeded in restructuring its debt in the first half of the year after facing financial problems since 1997.

The rehabilitation plan includes transferring assets to pay back loans, and creditors have approved a debt haircut averaging 30 per cent of the total Bt15 billion.

At present, the company has remaining debts of Bt4 billion that will be paid back over the next two years.

Tanade said that with a clear end to its debt problems in sight, the company was ready to expand its investment by launching four new property projects worth Bt3.5 billion by the end of the year.

Three of the four projects

will involve detached housing, and will be located at Onnuj, near Suvarnabhumi Airport, Rama V and Buddha Mondhol roads. The fourth will be a condominium called The Kris III, located on Suthisarn Road.

To fund the investment, Krisdamahana-korn plans to sell 16 hectares of undeveloped land

on Chaeng Wattana Road and another 16 hectares on the

Bang Na-Trat highway near Suvarnabhumi Airport. Proceeds from the sales are expected to amount to Bt1 billion, and the remaining cost of the four new projects will be borrowed from the bank, Tanade said.

Krisdamahanakorn expects sales of Bt2 billion this year,

double last year's revenue. In the first half, sales were Bt706 million and net profit Bt83.89 million, Tanade said.

Somluck Srimalee

The Nation