RS Public Company Limited (SET: RS) has announced that it failed to pay interest payment to financial institutions, causing a cross-default on other borrowings.
The company stated that it failed to comply with the terms and conditions of the loan agreements between the Company and its subsidiaries and financial institutions, resulting in a default on interest payments totaling 27.48 million baht.
This default grants the financial institutions the right to demand immediate repayment of the outstanding borrowings as follows: For the Company: Short-term borrowings: 940.20 million baht, Long-term borrowings: 831.32 million baht For the subsidiaries: Short-term borrowings: THB 225.23 million,Long-term borrowings: 878.57 million baht. The total borrowings is approximately THB 2,874 million.
Such default may lead to the Company being subject to a “CB” (Caution – Bonds) designation.
