8Ed.sol8.06

8Ed.sol8.06 - CASE 8.6 KASET THAI SUGAR COMPANY Synopsis...

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CASE 8.6 KASET THAI SUGAR COMPANY Synopsis Many public accountants, particularly recent graduates, relish the possibility of an “overseas” assignment. An international assignment may provide an opportunity to see and experience another part of the world, potentially further one’s career, or simply provide a much needed “break” from the “same old, same old.” However, as the practices of the major international accounting firms have expanded into third world countries, certain international assignments available to the employees of those firms have posed some degree of risk to their personal safety. Michael Wansley, a senior partner with Deloitte Touche Tohmatsu who was based in that firm’s Melbourne, Australia, practice office, was a well-known debt restructuring specialist. In the late 1990s, the services of such specialists was in great demand in Thailand. After a decade of impressive economic growth from 1985 through 1995, the Thai economy imploded, causing a large number of Thai companies to default on loans that they had secured principally from foreign banks and other international lenders. These creditors began hiring debt restructuring experts to help them collect these loans. Among the principal suppliers of debt restructuring services were the major international accounting firms, including Deloitte. The Kaset Thai Sugar Company was a prime example of a Thai company that had overextended itself during Thailand’s “boom” days. In the late 1990s, the company defaulted on nearly $500 million of loans. Wansley was sent to Thailand to help Kaset Thai Sugar’s creditors recover those loans. During the course of that engagement, Wansley discovered that $150 million of the funds obtained from those loans had been siphoned off by the company’s owners into “shell” companies that they controlled. Shortly after this discovery, Wansley was killed in an ambush in a remote region of Thailand north of Bangkok.
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72 Case 8.6 Kaset Thai Sugar Company Kaset Thai Sugar Company—Key Facts 1. A financial crisis in the late 1990s within Thailand caused many large Thai companies to default on their outstanding loans, including Kaset Thai Sugar Company. 2.
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This note was uploaded on 09/15/2011 for the course ACT 442 taught by Professor Nancy during the Spring '11 term at Ohio State.

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8Ed.sol8.06 - CASE 8.6 KASET THAI SUGAR COMPANY Synopsis...

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