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The SEC requires EARTH documents within five days and special audit on sources of debts



Wednesday 9 August 2017 | No. 69 / 2017



Bangkok, 9 August 2017 ? The SEC has ordered Energy Earth Public Company Limited (EARTH) to submit documents related to the debts worth more than 26 billion baht to the SEC within five business days and to arrange a special audit on the sources, existence and status of such debts which consequently caused EARTH to apply for business rehabilitation. The results of the special audit must be disclosed through the SET Electronic Information System within 30 days.

On 24 July 2017, EARTH filed an application for business rehabilitation with the Central Bankruptcy Court and informed the SET that the amount of debts had surpassed that of assets because EARTH's business partners had filed a lawsuit against EARTH at a court in authority for the total debt amount of more than 26 billion baht. As a result, EARTH has the total debt of 47.48 billion baht, higher than the total debt of 21.48 billion baht recorded in the first quarter of the fiscal year 2017, and the total assets of 31.829 billion baht. On 7 August 2017, EARTH informed the SET that such liabilities occurred after submission of the first-quarter financial statements for the year 2017.

The SEC viewed that the amount of debts had increased as high as 1.21 times, which significantly affected EARTH's financial position. In addition, the sources, existence and status of such liabilities are still unclear and may widely affect the benefits of the shareholders or investment decision-making of investors.

Accordingly, by virtue of law the SEC has ordered EARTH to submit the documents related to the increased debts within five business days. Additionally, the SEC may call for persons involved to provide information or submit evidentiary documentation while coordinating with foreign agencies to increase clarity for considering such matters.

Also, the SEC instructed EARTH to prepare a special audit, in addition to the previous order, concerning the sources, existence and status of the above debts to verify the total amount of such debts. In this regard, the special audit must be conducted by an auditor from any of the Big Four audit firms, and the report thereof must be submitted to the SEC and disclosed through the SET Electronic Information System within 30 days.

In any case, failure to comply with the SEC orders or disclosure of information inconsistent with the facts may subject EARTH's directors and executives to legal action that could lead to criminal penalties and civil sanctions. 


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Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 69 / 2017 Wednesday 9 August 2017
The SEC requires EARTH documents within five days and special audit on sources of debts


Bangkok, 9 August 2017 ? The SEC has ordered Energy Earth Public Company Limited (EARTH) to submit documents related to the debts worth more than 26 billion baht to the SEC within five business days and to arrange a special audit on the sources, existence and status of such debts which consequently caused EARTH to apply for business rehabilitation. The results of the special audit must be disclosed through the SET Electronic Information System within 30 days.

On 24 July 2017, EARTH filed an application for business rehabilitation with the Central Bankruptcy Court and informed the SET that the amount of debts had surpassed that of assets because EARTH's business partners had filed a lawsuit against EARTH at a court in authority for the total debt amount of more than 26 billion baht. As a result, EARTH has the total debt of 47.48 billion baht, higher than the total debt of 21.48 billion baht recorded in the first quarter of the fiscal year 2017, and the total assets of 31.829 billion baht. On 7 August 2017, EARTH informed the SET that such liabilities occurred after submission of the first-quarter financial statements for the year 2017.

The SEC viewed that the amount of debts had increased as high as 1.21 times, which significantly affected EARTH's financial position. In addition, the sources, existence and status of such liabilities are still unclear and may widely affect the benefits of the shareholders or investment decision-making of investors.

Accordingly, by virtue of law the SEC has ordered EARTH to submit the documents related to the increased debts within five business days. Additionally, the SEC may call for persons involved to provide information or submit evidentiary documentation while coordinating with foreign agencies to increase clarity for considering such matters.

Also, the SEC instructed EARTH to prepare a special audit, in addition to the previous order, concerning the sources, existence and status of the above debts to verify the total amount of such debts. In this regard, the special audit must be conducted by an auditor from any of the Big Four audit firms, and the report thereof must be submitted to the SEC and disclosed through the SET Electronic Information System within 30 days.

In any case, failure to comply with the SEC orders or disclosure of information inconsistent with the facts may subject EARTH's directors and executives to legal action that could lead to criminal penalties and civil sanctions. 


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