Precious Shipping Public Company Limited Case

Precious Shipping Public CompanyLimited (PSL) went through a process offinancial restructuring in response to theeconomic crisis that hit Thailand in 1997.PSL faced trouble since payments weredue in dollars and they had investmentsin Thai baht, which had devalued duringthe crisis. Being a professionally managedcompany with a high level oftransparency in their transactions, theycame out of the situation by managing torestructure their secured and unsecureddebts. A large part of the unsecured debtproved a little more complex since itwas tied to a swap. The case describesthe financial restructuring process and thebusiness scenario during the crisis, andprovides an opportunity for learningabout financial risk management