Saha Farms Hopes for Quick Loan Approval27 September 2013
THAILAND - Beleaguered Saha Farms hopes Krungthai Bank will approve a new credit line this month.
According to The Nation, Panya Chotitawan, chairman of the poultry processor, said that if the bank's loan approval is delayed, he would find funds from other sources to pay workers as well as contracted chicken raisers and corn growers as soon as possible.
He will also make an all-out effort to reopen the company's plants, as overseas customers are waiting for products. Saha Farms will also expand its export markets to the Middle East.
The financially strapped firm used to employ about 30,000 workers but after it started to run out of money in July, about half quit. Now, about 7,000 are asking for re-employment.
Pitikan Sitthidej, deputy director-general of the Rights and Liberties Protection Department of the Justice Ministry, chaired a mediation meeting of Saha Farms and workers and contracted farmers in Chaiyaphum and Lop Buri, who were disgruntled over overdue payments.
After the meeting, she said KTB committed to open a Bt1-billion credit line for Saha Farms, which is struggling to resume exports of frozen chicken this month.
However, a source from the bank said the financing depended on the company submitting a sound business-restructuring plan.
The company's operations have been halted for months as it suffers a liquidity crunch.
The bank has been open to extending assistance to the chicken company, as it views that the financial problem is caused by external factors, particularly the doubling in the price of corn - a major ingredient in chicken feed meal.ThePoultrySite News Desk