The Central Bankruptcy Court is set to issue a ruling declaring Vonnarat Tangkaravakoon, former executive and major shareholder of scandal-plagued Stark Corporation (STARK), bankrupt, with orders to distribute assets to 3,417 creditors whose combined claims total 131.4 billion baht.
The case is now awaiting a ruling from the Criminal Court to determine whether Mr Vonnarat is guilty of wrongdoing and liable for investor damages, according to the Thai Investors Association (TIA).
To protect shareholder rights, the TIA earlier urged all Stark common shareholders affected by the fraud to file debt claims with the Legal Execution Department by April 11. On Sept 27, the first creditors’ meeting was held and confirmed there were 3,417 creditors with total claims of more than 131.4 billion baht.
Creditors are divided into four categories, comprising financial institutions, tort creditors (including bondholders and common shareholders), Phelps Dodge International (Thailand) Ltd and Piyachanok Tangkaravakoon, who is Mr Vonnarat’s spouse.
Since Mr Vonnarat did not submit a debt settlement plan, the receiver has recommended the court issue a bankruptcy judgement against him.
Meanwhile, the Criminal Court case, filed by public prosecutors against Mr Vonnarat and associates, is still underway.
The receiver has informed the court that Mr Vonnarat is now under absolute receivership and in bankruptcy proceedings, but the court should continue its criminal trial to determine his guilt and liability for damages.
Once the Criminal Court issues its ruling, the receiver will decide on compensation and determine the repayment amounts due to tort creditors, including both bondholders and common shareholders, according to the TIA.
The receiver is now collecting Mr Vonnarat’s assets and verifying all creditor claims. Debt investigations for common shareholders will begin after the Criminal Court delivers its verdict.
The next step will be for the Bankruptcy Court to officially declare Mr Vonnarat bankrupt, allowing the receiver to liquidate assets and distribute repayments to all approved creditors.
The TIA released this updated information to inform Stark shareholders and affected investors of the ongoing legal and procedural developments in the case, the TIA stated.
The Stark case began in mid-2023, when the company failed to submit its 2022 financial statements, prompting the Stock Exchange of Thailand (SET) to suspend trading in June 2023.
Subsequent investigations uncovered large-scale accounting fraud, including falsified financial statements and suspicious fund transfers worth over 100 billion baht.
The Securities and Exchange Commission (SEC) later filed civil and criminal charges against key executives, including Mr Vonnarat, in late 2023. The case has since proceeded to the Central Bankruptcy Court and Criminal Court in 2024.