On behalf of the New Nordic Restructuring Team, I would like to acknowledge your understandable concerns relating to New Nordic Development Co., Ltd.’s (NND) significant challenges and ongoing rehabilitation, in common with most tourism and travel-related companies globally. I am including our current and former employees, business partners, suppliers, and other stakeholders, many of whom have also suffered a loss of income and other stresses.
For over 12 years, the various New Nordic companies have successfully delivered numerous projects to thousands of clients from all over the world. When Covid-19 struck early in 2020, New Nordic’s operations came under enormous pressure. As the year progressed, we were even more exposed to changing market forces, worsened by the pandemic, which contributed to a decline in our financial position. In mid-2020, the shareholders took decisive steps and decided much of senior management had to be laid off, and I was appointed CEO of a new executive team. One of our first tasks was to appoint the New Nordic Restructuring Team to assess our operational viability, investigate our businesses, and develop a plan to reinvigorate the business and restore lost value. Since then, the Restructuring Team has had to deal with further challenges and the market situation has, unfortunately, weakened further.
The Restructuring Team consists of the new executive team (myself and the COO and a small number of carryover maintenance, security, and operations staff) and several independent financial and legal advisors. I can assure you that the team is singularly focused on your wellbeing as well as our employees and other stakeholders. Our goal is to prevent a corporate failure that could result in an outright loss of your asset. This process may take several years to complete depending on the overall course of the global markets.
An important early decision was to place New Nordic Development Co., Ltd into voluntary rehabilitation under Thailand’s Bankruptcy Act, which we did on 28 January 2021. Under the court’s protection, all civil actions against the company and payments to creditors are suspended. This allows the company to continue operations while we develop the rehabilitation plan which will include our 23 completed projects, the two Castles as well as a revised Phetchaburi Park development. If you are a stakeholder in New Nordic Development Co., Ltd you will be allowed to vote on this rehabilitation plan when it becomes available, and we have provided a summary of the process here.
The above voluntary rehabilitation action relates only to the projects under NND and does not cover other projects loosely falling under the New Nordic banner.
The Restructuring Team is currently conducting an intensive review of all New Nordic and related entities to determine what challenges exist, as well as reviewing options for maximizing value and reviving the group as a sustainable business.
The way forward
I, and the New Nordic Restructuring Team, believe that the best path for restoring value to NND is for you to vote for the rehabilitation plan. Regrettably, the alternative may be a liquidation of NND and the loss of most remaining value as all assets are sold to pay creditors. I encourage you to support me and the Restructuring Team as we take the difficult, but necessary, steps under the Thai rehabilitation process.
I understand that you are anxious about the outcome of the path ahead. I assure you that the Restructuring Team is working tirelessly to protect our clients, employees, and other stakeholders from further losses. We humbly ask for your support and patience as we work through the steps and assess options for restoring NND to stability, growth, and profitability.
Throughout the process, we are committed to providing timely and accurate information directly to you along with our views on the future of NND as quickly as possible. Throughout the process, we are committed to providing timely and accurate information directly to you along with our views on the future of NND as quickly as possible.
This letter is the first in a series of regular updates as part of the restructuring team’s sincere intention to be as transparent and accessible as we can. We hope this will ensure the rehabilitation plan gets the support it needs to succeed. We will be as transparent and accessible as we can. We will email new information to you, and you can access additional material on our website.
If you have any comments, questions, or concerns, please use the query form on the website, and we will respond as quickly as possible.
CEO, New Nordic Development Co., Ltd