Tuesday, September 22, 2009

Jasmine orders TT&T to cede control of Maxnet after ruling

       Jasmine International Plc has given TT&T Plc an ultimatum to stop operating a broadband internet service through an affiliate, claiming the business unit is majority owned by Jasmine.
       The parent of the provincial fixedline telephone and internet provider said it was asserting its right to take over Triple T Broadband, based on the fact that it owns a 91% stake in the internet provider.
       The assertion came in a letter to TT&T after the Central Bankruptcy Court approved the appointment of P Planner to prepare the debt rehabilitation plan for TT&T, according to a TT&T shareholder.
       The executive said TT&T had threatened to cancel broadband bill payment services at its nationwide customer service centres for Triple T if Jasmine takes over the business. In addition, TT&T threatened to sue Jasmine if the latter cuts off its copper cable or optical-fibre network without permission.
       In the letter, Jasmine ordered TT&T Subscriber Service, another subsidiary of TT&T, to stop managing the MaxNet broadband service as it is causing confusion among customers. Jasmine said it neither hired nor requested TT&T Subscriber to run the business.
       Triple T Broadband has not run the business in compliance with Jasmine's policies and disagreed with its manage-ment plan, which is causing severe damage to the broadband unit, Jasmine said.
       Also, as TT&T is entering into rehabilitation, it urgently needs to put most of its efforts into restructuring debt, creating a new business plan and restructuring the organisation, Jasmine said."We want TT&T to stop running the broadband management and revenue collection,and transfer customers from its network."
       TT&T is planning to restructure 21 billion baht in debt. Of all, 18 billion baht consists of long-term obligations of five to 10 years, and the remaining 3 billion represent supplier credits. Of that amount,45% of the debts are owed to a dozen local financial institutions, with the rest to foreign creditors.
       Jasmine also said that TT&T could not ban customers from paying bills at its facilities because the company had informed the Revenue Department that Triple T was allowed to legally use the centres for bill services.
       "We have the right to fully control the broadband unit and TT&T has no right to intervene," the letter said, adding that TT&T held only a 9% stake in Triple T Broadband.
       Triple T, with 10 million baht in registered capital, previously was wholly owned by TT&T. But TT&T failed to inject money into the company when it needed to raise its capital to 110 million baht, resulting in Jasmine becoming the major shareholder.

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