The former chairman of Stark Corp., a Thai industrial cable maker at the center of an accounting scandal and debt defaults, has been flagged to Interpol by local authorities seeking to apprehend him.
Thailand’s Department of Special Investigation is seeking Chanin Yensudchai on charges of financial misconduct brought against him and others by the market regulator, which alleges they concealed details and made false statements about the company’s accounts, among other misdeeds.
Stark faces a deepening criminal investigation and class-action lawsuit after its revelations of irregularities in past accounting. Restated financial results showed it made a net loss in the past two years, and that its liabilities exceeded assets. The company last month defaulted on some of its 39 billion baht ($1.13 billion) in liabilities. The shares were suspended after sinking 99% this year.
Jack Taylor/AFP/Getty Images
Vonnarat Tangkaravakoon, the company’s biggest shareholder, has also been summoned for arraignment by the DSI and has said he’ll meet with investigators next week, said Pitchaya Tharakornsunti, an agency spokesperson. A scion of one of Thailand’s wealthiest families, Vonnarat had been tasked with keeping Stark afloat after key executives departed earlier this year, when the firm delayed releasing financial statements.
Stark didn’t immediately respond to an email Friday seeking comment on the DSI’s latest steps.
Chanin and Vonnarat are among Stark’s former executives whose assets were ordered to be seized by Thailand’s Securities & Exchange Commission. Among other charges, the regulator alleges they misused funds from bond sales.
Stark this week asked the SEC for permission to extend the deadline to Sept. 29 for a submission of a special audit, citing the need to gather information and documents.
The company had earlier said it plans to restructure its debt to stave off a forced delisting, saying it may ask creditors to swap their debt into equity and try to convince its major creditors not to pursue an accelerated debt payment.
Credit: Source link
