Ananda reaffirms debt payment ability despite permit revocation

Ananda Development Public Company Limited (SET: ANAN) has published a statement through the Thai Stock Exchange indicating that the court’s verdict has minor impact on its debt payment capacity.


Following the Supreme Administrative Court’s judgment on July 27th to revoke the Ashton Asoke condominium construction permit due to an inappropriate entry, on July 31st, the corporation issued a letter stating that the financial impact of the resolution will be minimal. The corporation still has the ability to pay all bond and debenture debts owed to all debtors.


Furthermore, the corporation explains in the letter three continuing strategies to fix the matter.


First, the company, along with its auditor and other relevant parties, is currently examining the financial impact of the occurrence. To achieve this, the company’s subsidiary, Ananda MF, along with SEA Investment, Ashton Asoke’s two co-investors in the form of a joint venture, is compiling the total damage and possible ways of resolving to negotiate with authorities about what must be done. Ananda goes on to say that the damage is proportional to the investment, with Ananda holding 51% and SEA investment 49%.


Second, the company is evaluating alternatives to demolishing the property. Ananda claims that the investigation is being carried out in accordance with the regulator’s recommendation. And that the company intends to meet with the Governor of the Bangkok Metropolitan Administration and the Governor of the Mass Rapid Transit Authority of Thailand (MRTA), who have also been sued in the same case, within 14 days of the judgment date or since July 27, 2023, to discuss the solution.


Third, Ananda is in discussions with relevant public authorities to determine the best standards in compliance with the law for allowing the Ashton Asoke project to repair the damage done to condominium unit buyers or co-owners, including Ananda MF, the project’s developer.


In a broader sense, the company suggests that, despite the ongoing legal issue, it can still manage debt payments to all debtors and that the condominium building is unlikely to be dismantled.