Assured Repayment of Bank Debts by Q2 2025 According to RS
RS Public Company Limited (RS) is taking proactive measures to address its financial difficulties and strengthen liquidity, as disclosed by CEO Surachai Chetchotisak. The company faces a challenging economic environment, rapid industry changes, and intense competition that has compounded its struggle to meet loan agreement conditions with financial institutions.
As of March 31, 2025, RS and its subsidiaries had defaulted on interest payments worth 27.48 million baht. The company currently holds 831.32 million baht in long-term loans and 940.20 million baht in short-term loans, while subsidiaries have 878.57 million baht in long-term and 225.23 million baht in short-term loans.
In order to address these challenges, RS is negotiating with financial institutions to restructure its debt, focusing on adjusting repayment terms that align with the company's current liquidity and repayment capacity. These debt restructuring negotiations are expected to be finalized by mid-2025.
Another key aspect of RS's strategy is cost control, with the company aiming to reduce overall costs by approximately THB400-450 million per year. Key cost-saving measures include streamlining workforce structure, reducing redundancies, expanding more efficient expense controls, and capping marketing and advertising budgets at around 10% of total revenue. This is expected to reduce selling expenses by about THB150 million this year compared to last.
To further improve financial liquidity, RS plans to divest non-core assets, particularly subsidiaries and brands that do not align with the main strategy but still hold market value and positive business prospects. The company expects proceeds from these sales to range from THB 250 to 350 million.
Surachai emphasized that management is committed to resolving the financial situation quickly and ensuring a business turnaround that benefits all stakeholders. The company is refocusing on promising and future-oriented businesses, while divesting others that are not suitable in the current circumstances, with progress in this area well underway.
In a bid to expand internationally, RS also announced partnerships with Universal Music, aimed at making headway on the global stage. However, the immediate focus remains on resolving debt issues and achieving a business turnaround through financial restructuring and strategic adjustments.
[1] RS Public Company Limited, "RS Public Company Limited's Financial Statements for the Year Ended December 31, 2024"[2] Prachachat Business, "CEO Surachai of RS Expresses Optimism Despite Stock Price Decrease"
- In an effort to boost its international presence, RS Public Company Limited has formed partnerships with Universal Music to explore opportunities in the global market.
- To ensure a business turnaround that benefits all stakeholders, RS is exploring the possibility of investing in personal-finance initiatives that could potentially enhance its liquidity and financial stability.
- The intensified competition, rapid industry changes, and challenging economic environment have made it difficult for RS to engage in substantial business and investing deals in the tourism sector.
- With the restructuring of its debt and the divestment of non-core assets, RS aims to channel resources into the football industry, a promising area for the company's future business development.
