Alphatec Electronics Plc, the Thai chipmaker which has been drowning in debt, has won another reprieve from its creditors holding $45m of bonds. They have voted overwhelmingly not to declare the company in default and have authorized Bankers Trust AG to negotiate a restructuring plan with the company before November 30. At a meeting in Zurich, Alphatec presented the creditors with a viability study and partial restrucuring plan prepared with accountants Price Waterhouse. There will now be detailed negotiations on a new capital structure for the company. In June, Alphatec said it was $450m in debt and the creditors clearly hope that something can salvaged from a company still in operation rather than fight over what is left of the assets after bankruptcy. An audit by Price Waterhouse reported in July that the company had overstated profits by at least $164m in a period when it should have been reporting significant losses. Alphatec, designed to propel Thailand into a leading center for hi-tech products, suffered further set-backs after Charn Uswachoke quit as chief executive after it was revealed that Alphatec had transferred $160m of its funds to other Charn- controlled companies.
