Please find enclosed five receipts totalling THB89,000,000 which were made by us on behalf of our subsidiary company, Kelwat Investments Ltd (Kelwat), to Wood Group Heavy Industrial Turbines (Thailand) Ltd. These payments were made over a period from 22 June 2005 to 25 May 2006. All of these receipts were made by Royal Bank of Scotland and were the result of a loan drawdown made by us using a bank facility we had with Royal Bank of Scotland. The reason that these payments were not made by Kelwat was due to the fact that Kelwat did not have a facility allowing them to draw down Thai Baht funds and they also did not have a THB bank account to facilitate such payments. It is common practice within our Group for subsidiaries to borrow from the lead entity to either lend to other Group companies or to utilise the funds to meet working capital requirements.
We would ask you to re-register each of these five credit advices with the Bank of Thailand with the following changes;
BY ORDER OF : Kelwat Investments Ltd
DETAIL OF PAYMENT: Loan Agreement XXXXXXX
so that Wood Group Heavy Industrial Turbines (Thailand) Ltd can repay the loan with reference xxxxxx. It is likely that these loan repayments will be made over the coming months.
If you require any further information please do not hesitate to contact Julie Matthew (julie.matthew@woodgroup.com) or at the details given on the top of this letter.