Garages will get Sampanh shares

General news - Thursday December 13, 2007

Garages will get Sampanh shares

Sampanh Insurance will convert the more than 100 million baht in debt it owes to garages into equity and turn them into shareholders, according to Chantra Purnariksha, the secretary-general of Office of the Insurance Commission.

According to Mrs Chantra, company management reported that the swap would cover 123 garage operators.

The insurer, which was ordered to suspend operations in mid-July, also notified OIC that it has been working on due diligence with new investors. The names of the investors would be disclosed next week.

Sampanh Insurance's burdens include 300 million baht in claims to 5,500 policyholders, excluding 100 million baht owed to garages.

Besides Sampanh, the OIC has been working closely with the managements of two other cash-strapped insurers, Thanasin and Saha Life Insurance Co.

According to Mrs Chantra, Thanasin has paid out 31 million baht to 819 customers in the past year and pledged to bring in more reserves by this month.

Thanasin has outstanding debts mainly owed to garages of about 486 million baht.

To rehabilitate Saha Life, an insurance company formed by agricultural co-operatives, the government has amended regulations to enable private investors to buy a stake in the insurer rather than only in the co-operatives.

Two potential investor groups have reportedly conducted due diligence with Saha Life, she said.

Bangkok Post