The Latest Breaking News from Stark

Stark Corporation Public Company Limited, the Thai industrial cable maker at the centre of an accounting scandal and debt default that rattled financial markets, plans to restructure its debt to stave off a forced delisting.

The Department of Special Investigation has impounded assets worth 100 million baht from listed wire and cable manufacturer Stark Corp and suspects total damage in the alleged fraud could reach 100 billion baht.

Members of the management team and others involved in the fraud surrounding Stark Corporation (STARK) could face up to 10 years in prison if found guilty, the Securities and Exchange Commission (SEC) said on Monday, as it tried to restore confidence in the Thai capital market.

The Department of Special Investigation (DSI) agreed last Thursday to investigate SET-listed Stark Corporation Plc for fraud committed by its former executives, which resulted in the loss of billions of baht.

Only a year ago Stark Corporation looked like a Thai corporate success story. Backed by a wealthy local businessman, the nearly US$2 billion maker of electrical cables was an aggressive acquirer making its first major push beyond Asia.

The Department of Special Investigation (DSI) has agreed to investigate Stark Corporation over suspicions of fraud by its former executives, which came to light after the publicly listed wire and cable maker failed to submit its financial statements in time as required by law.

Stark Corporation, the SET-listed and financially troubled wire and cable manufacturer, has insisted it will not pay any debts until the company reaches agreements with every bondholder and creditor about the repayment methods.

Finance Minister Arkhom Termpittayapaisith says if any illegal activities are found in the probe of Stark Corporation shares, responsible agencies must prosecute the offenders.

Kasikornbank (KBank) and Asia Plus Securities (ASPS), representatives for Stark Corporation's bondholders, called for the immediate payment of bonds worth more than 6.9 billion baht after they decided to cancel tomorrow's bondholders' meeting.

Bondholders of Stark Corporation Public Company Limited called for immediate payment of about US$200 million after a special audit revealed accounting irregularities, the latest trouble for the Thai electrical components maker that has defaulted on debt and seen its shares plummet to near-zero.

Finance Minister Arkhom Termpittayapaisith has told the Securities and Exchange Commission (SEC) to take action regarding Stark Corporation's negative shareholder equity to protect investors' interests and build confidence.