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Dean & Deluca owner, Thailand's Pace defaults on debt of $86 mln

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Dean & Deluca owner, Thailand's Pace defaults on debt of $86 mln

 

1200px-Pace_Development_Logo.svg.png

Image: Wikipedia

 

BANGKOK, Oct 21 (Reuters) - Thai property firm Pace Development Pcl, owner of the high-end grocer Dean & Deluca, said on Monday it was in default of 2.6 billion baht ($86 million) with one of the nation’s largest lenders as of Oct. 18, sending its shares down 25%.

 

The announcement comes weeks after Dean & Deluca closed its flagship store in New York and other locations in Bangkok.

 

Siam Commercial Bank Pcl (SCB) notified the firm, which bought the grocer franchise in 2014 for $140 million, to pay outstanding debt by Nov. 4, Chief Executive, Sorapoj Techakraisri, said in a statement to the Stock Exchange of Thailand.

 

Pace Development will negotiate with Siam Commercial Bank to prepare a debt management plan so that it would be able to carry out operations and maintain competitiveness, Sorapoj said.

 

SCB’s shares slid 3% against the broader index drop of 0.6%

 

The company’s construction projects have been suspended, but its food and beverage operations were not affected, he added.

 

In 2018, Pace sold here the Bangkok's tallest building, now named King Power MahaNakhon, for 14 billion baht to duty-free retailer and owner of the Premier League football club Leicester City, King Power . ($1 = 30.2600 baht)

 

(Reporting by Chayut Setboonsarng; editing by David Evans)

 

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-- © Copyright Reuters 2019-10-21

 

 

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I am sure SCB will have collateral from Pace to cover

any default on the loan ! 🙄

regards Worgeordie

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Never released they were actually owned by a company here. The food selection is decent, especially at their Sathorn branch, but the prices were never going to be popular here. 

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1 hour ago, ExpatOilWorker said:

10 billion baht went this way:

Mr Sorapoj said Pace's board of directors also approved the purchase of shares in Pace Project One and Pace Project Three in the proportion of 49% and 48.7% respectively from Apollo Asia Sprint Holding Company Ltd and Goldman Sachs Investments Holdings Asia Ltd for the total amount of 10 billion baht, effectively ending Pace's commitments to Apollo and Goldman.

Nice little exit for Apollo & Goldman. How many of the directors of Pace sat on their boards as well...

Edited by DrTuner
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I doubt he is particularly concerned.

 

Owe the bank $10,000 and its your problem, owe them USD$86million, and it's theirs.

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8 minutes ago, DLock said:

I doubt he is particularly concerned.

 

Owe the bank $10,000 and its your problem, owe them USD$86million, and it's theirs.

Or the tax payers... as we've seen in numerous Western countries. 

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<deleted>... they had good sandwiches.

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The thing is that this was a company that thought it could win in the US against starbucks and lost.  As we all know the prices were high yes it was good coffee and the food wsa good but the prices were just too high considering atht there are many other options.

 

This is the first a lot of the companies that are trying for the high end HISO are going to start falling also if they are not located in the HISO Stores

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20 hours ago, worgeordie said:

I am sure SCB will have collateral from Pace to cover

any default on the loan ! 🙄

regards Worgeordie

I sure hope so.

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