News Detail: [TPI] Submission of the Rehabilitation Plan Amendment progressSymbol: TPI Headline: Submission of the Rehabilitation Plan Amendment progress 1 April 2004 President The Stock Exchange of Thailand Dear Sir, No. PAO.PK. 044 /2004 Re:Submission of the Company's Rehabilitation Plan Amendment progress With reference to the meeting between Thai Petrochemical Industry Public Company Limited ("the Company") Plan Administrator representatives, the Company's financial advisor and legal advisor with the Stock Exchange of Thailand ("SET") on 31 March 2004 reporting the progress of the amendment of the Company's rehabilitation plan and the debt and capital restructuring framework as agreed by the Plan Administrator on 30 March 2004. The company would like to submit a progress report of the amendment of TPI rehabilitation plan as attached for your acknowledgement. Yours sincerely, ( Suwit Nivartvong ) for Plan Administrator, Thai Petrochemical Industry Public Company Limited Attachment: Letter informing progress of the amendment of TPI rehabilitation plan ("Plan") Ref PAO.PK. 043/2004 Date: 1 April 2004 1 April 2004 President The Stock Exchange of Thailand Dear Sir, No. PAO.PK. 043/2004 Re: Pogress of the amendment of TPI rehabilitation plan ("Plan") With reference to the Thai Petrochemical Industry Public Company Limited ("the Company") Plan Administrator's meeting of on 30 March 2004, the Plan Administrator has agreed to the framework of the amendment of the Company's rehabilitation plan proposed by the Company's financial advisors and legal advisors. The amendment of the Plan includes the debt and capital restructuring framework as provided in the attachment. However, the plan amendment is subject to the approvals of the creditors and the Central Bankruptcy Court in accordance to the legal process. The company will notify of any progress in the future. Your acknowledgement of the above matter is highly appreciated. Yours sincerely ( Suwit Nivartvong ) for Plan Administrator, Thai Petrochemical Industry Public Company Limited Summary of the Amended Rehabilitation Plan of Thai Petrochemical Industry Public Company Limited The amended business reorganization plan ("Plan") of Thai Petrochemical Industry Public Company Limited ("TPI") with the framework proposed by TPI's financial and legal advisors, in consultation with the Committee of Creditors ("CoC"), and based on TPI's audited consolidated financial statement as of 31 December 2003, has been accepted by TPI's Plan Administrator. The summary of the framework is as follows: Summary of Debt Restructuring Framework Approximately THB108,800MM (US$2,720MM) of total debt principal is restructured as follows: o Approximately THB20,000MM (US$500MM) is to be repaid in 5 years at interest rate MLR-1% for THB debt, LIBOR+1% for USD and YEN debt, and EURIBOR+1% for EURO debt. o Approximately THB34,000MM (US$850MM) is to be repaid in 10 years at interest rate MLR for debt in THB, LIBOR+2% for USD and YEN debt, and EURIBOR+2% for EURO debt. First repayment is to be made after THB20,000MM of debt described above is fully repaid. o Approximately THB6,000MM (US$150MM) is to be serviced at interest rate 1% in the first year, 2% in the second year, 3% in the third year and 4% in the forth year and there after. The principal is to be repaid by bullet payment in year 10 o Approximately THB12,000MM (US$300MM) ) is to be serviced at interest rate 1% in the first year, 2% in the second year, 3% in the third year and 4% in the forth year and there after. The principal is to be repaid by bullet payment in year 12. o Approximately THB10,000MM (US$250MM) with no interest is to be repaid by proceeds from sales of TPI Polene Public Company shares currently held by TPI or by the transfer of such shares to the creditors. o Approximately THB26,800MM (US$670MM) is to be converted into equity in TPI (see details in the Capital Restructuring summary) Approximately THB9,000MM (US$225MM) accrued interest is to be written off. Summary of Capital Restructuring Framework * Reduction of TPI's paid-up registered capital by 90% via par reduction from THB10 per share to THB1 per share. The reduced registered capital is to be used to reduce TPI's retained loss. After the registered capital reduction, TPI's original paid-up registered capital of approximately THB78,489.11MM will be reduced to approximately THB7,848.91MM while the number of shares of 7,848 MM shares remains unchanged. * Increase TPI's registered capital to accommodate for the conversion of approximately THB26,800MM (US$670MM) debt into TPI's equity, of which conversion price will be at no less than TPI's most recent book value. After the conversion, the creditors' holding in TPI will increase from the existing 75% to 90% while TPI's original shareholder's stake will be at 10% of the total registered capital. * Increase registered capital to accommodate an employee stock option program amounting to approximately 5% of total registered capital. * Furthermore, the financial advisors are to explore the feasibility of additional warrants for TPI's minority shareholders. * In order to preserve TPI's on-going value and continuity of TPI's business, strategic investor(s) will be invited to make an investment by acquiring shares from creditors (in whole or in part). The strategic investor(s) must be a Thai juristic person and have expertise in petrochemical or petroleum business or investment. Summary of the outcome from the debt and capital restructuring framework * Reduction of TPI's principal debt and accrued interest from approximately THB117,800MM (US$2,945MM) to approximately THB72,000MM (US$1,800MM) post-restructuring. * Elimination of TPI's retained loss, which will enable future dividend payments to TPI's shareholders.