Thai wire maker faces German arbitration, potential bond default

Stark Corp. shares plunge 98% after audit finds 'irregularities'

Stark Corp. has called default on two bond payments worth 2.24 billion baht ($65 million) and will likely miss three more valued at 6.96 billion baht. (Source photos by screenshot from Stark Corporation's website)

FRANCESCA REGALADO, Nikkei staff writer

June 20, 2023 20:02 JST

BANGKOK -- One of Thailand's top 100 listed companies is embroiled in arbitration in Germany, after warning of default on bond payments worth 9 billion baht ($260 million) and backing out of a deal to purchase Germany's largest automotive cable company.

Shares in electrical wire manufacturer Stark Corp. have plunged 98% since the beginning of February, when PwC flagged "suspicious circumstances" in Stark's audit committee in an initial audit report. The company warned of default on two bond tranches worth 2.24 billion baht and will likely miss three more valued at 6.96 billion baht.