TWZ Notifies Cross Default on TWZ26DA Convertible Bonds Worth Over 225 Million Baht, Schedules Meeting on Sep 9 to Request 1-Year Extension

Corporate Action
โดย Kaohoon·TH·Read original
Summary · why it matters

TWZ Corporation Public Company Limited (TWZ) has notified a cross default event under the terms of its TWZ26DA convertible bonds, which have an outstanding balance of 225.04 million baht held by 160 bondholders. The company confirms that no principal or interest on these bonds is in default, but the default on debts to financial institutions has triggered a cross default. The bondholders' representative, Asia Plus Securities, notified the default on August 14, 2026, and granted a 30-day cure period. The total debt to financial institutions as of August 10, 2026, amounts to 932.14 million baht, comprising debt to Bangkok Bank (BBL) of 523.21 million baht plus interest, and obligations under a debt restructuring agreement of 328.27 million baht, including overdue interest of 9.54 million baht. BBL has also demanded repayment of an additional 74.10 million baht after the bank paid under a guarantee letter; this amount is not included in the aforementioned 932.14 million baht. Meanwhile, debt to UOB has an outstanding principal of 59.61 million baht and overdue interest of 2.02 million baht. The company also has guarantee obligations for defaulted debts of subsidiaries amounting to 53.94 million baht. TWZ stated that the liquidity problems stem from a gross loss of 639 million baht from selling inventory in bulk at below cost, and a net loss of 2,317.89 million baht according to the consolidated financial statements for 2025. The company plans to hold a bondholders' meeting on September 9, 2026, to request a waiver of the default and an extension of the bond maturity from 2 years 6 months to 3 years 6 months, postponing the redemption date to December 19, 2027. If not approved, the default interest rate will increase to 9.50% per annum.

Impact on stocks 3

Digital Finance & Tokenization▼ · 1 stocks
Bangkok Bank PCL
BBL
▼ NegativeCapitalrelevance

Bangkok Bank is TWZ's largest creditor with 523.21M baht exposure plus a 74.10M baht guarantee payout, and its debt default triggered the cross default.

Financials▲ · 1 stocks
Asia Plus Group Holdings PCL
ASP
± MixedRegulationrelevance

Asia Plus Securities acts as bondholders' representative notifying the TWZ cross default and granting a 30-day cure period, a procedural role rather than a direct financial hit.

Others▲ · 1 stocks
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