Mono Next Public Company Limited (SET: MONO) has disclosed to the Stock Exchange of Thailand the default of its subsidiary regarding the letters of credit guarantee.
The firm noted that the Company has revamped its programming schedule, focusing on sports and lifestyle content and news, to lessen its reliance on movies and series content from leading content studios in the long run. The Company has negotiated with certain content copyright owners, but the negotiations were unsuccessful, resulting in default. Currently, a subsidiary of the Company has defaulted on debts arising from letters of credit issued as guarantees for the acquisition of international movie and series content rights, leading to a default on other debts, totaling 220 million baht (equivalent to 8% of total assets). As a result, the financial institution has the right to demand full repayment of the loan; thus, causing the subsidiary to default on its debts with the financial institution.
Still, the company added that it is currently negotiating to extend the debt repayment period, which is presently under consideration of the financial institution to find the most urgent solution.
