Alphatec Electronics PCL, the cash-strapped Thai technology group, has been granted a one month reprieve by its bond holders, who on Wednesday voted not to declare the company in default of its repayment obligations. The six hour meeting was held in Zurich, where the company presented a restructuring plan designed to keep the group out of the bankruptcy courts. The decision, by holders of $45m worth of company Eurobonds, not to enforce repayment is only a minor victory for Alphatec, who must now address the mountain of foreign and domestic debt still shackling the group. None of the directors were present at the meeting, following financial irregularities and allegations from the former finance director, Mr Leslie Merszei, that the board had made secret payments to safeguard funds ahead of creditors and shareholders. Auditors Price Waterhouse have also revealed that company profits dating from 1995 are vastly overstated, and a report on the true state of affairs is expected within a month. CFO Merszei, a former director at Dow Chemical Co (Europe), was brought in just three months ago in an attempt to turn the struggling company around. But recent events have proved too much to bear and Merszei is walking away saying the situation is unsalvagable. Founder and major shareholder Charn Uswachoke was also forced to resign his position as chief executive last week amid allegations about his conduct. A further bondholder meeting has been scheduled for September 5th.
