FRESHFIELDS BRUCKHAUS DERINGER PRESS RELEASE

The single largest industrial merger in Thailand since the 1997 Asian financial crisis, NTS Steel Group and Siam Cement’s steel producing facilities, closed. The restructuring and insolvency team at Freshfields Bruckhaus Deringer, Bangkok, advised Credit Suisse First Boston, as agent to a significant number of noteholders.

NTS Steel Group accepted a debt restructuring deal that saw it merge with Siam Cement’s two steel producing facilities and a new parent company take over its stock exchange listing.  The new entity, Millennium Steel, will control over 25 per cent of Thailand’s steel producing capacity.

“In an industry that is in urgent need of consolidation, Millennium Steel, with its stronger financial position, is well poised to take market share from its debt-tied competitors,” explains Surasak Vajasit, partner, Freshfields Bruckhaus Deringer. “This deal could encourage further consolidation in the steel sector and set a precedent for other industries in Thailand.”

Freshfields Bruckhaus Deringer had been advising Credit Suisse First Boston since 1997, as agent to a group of unsecured noteholders, on the restructuring of NTS Steel, including negotiations on the terms of the restructuring and dealing with the claims submitted by the noteholders.  The deal involved a debt-for-equity conversion for the noteholders who received equity in the newly listed entity.  To facilitate the restructuring, NTS Steel was placed into court sanctioned reorganisation proceedings.  Total debt of NTS Steel was approximately US$500m.

Freshfields Bruckhaus Deringer has acted for European based creditors on a number of Thai restructurings and recognises the importance of effective representation.  The firm also assists creditors with complying with the various deadlines involved in court sanctioned reorganisation proceedings.

The Freshfields Bruckhaus Deringer team members were Surasak Vajasit, partner, and associates Edward Dever and Pattiya Thanyodom.