Thai stock market suffers as Stark Corporation defaults

Investors were cautioned by stock market regulators regarding Stark Corporation’s shares, as the company is expected to default on payments for corporate bonds valued at nearly 9.2 billion baht. Following a bondholders’ meeting, Stark announced its intention to “call default” on two bond series worth 2.24 billion baht within a month, raising concerns about the company’s ability to pay for three other bond series valued at approximately 6.96 billion baht.

Vonnarat Tangkaravakoon, a major shareholder and director, stated in a filing to the Stock Exchange of Thailand (SET) that the company’s decision to call default makes it highly unlikely that Stark will be able to pay for the three other bond series, also known as “cross default”. Kasikornbank is the representative for four out of the five corporate bond series that Stark is expected to default…