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(Bloomberg) — Energy Absolute Pcl, the embattled Thai renewables firm, said it’s seeking a partner to help it with 19.5 billion baht ($539 million) of debt due in 2024, after its credit rating was cut to junk due to a fraud probe. 

The company is “in the process of negotiating and considering the selection of strategic partner(s)” to boost its strength, repay debt and develop a sustainable business. It also intends to roll over short-term loans and said it still has about 1 billion baht of revenue each month from power plants, according to a filing on late Monday. 

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Energy Absolute’s shares have slumped 70% this year on concern over its aggressive expansion into everything from power generation and battery production to automaking and the assembly of trains, ferries and buses. Founder and CEO Somphote Ahunai, who has now lost his billionaire status, resigned at the weekend after the Securities and Exchange Commission said it was investigating him and other executives for possible fraud. He denies wrongdoing.

The disclosure came after the Stock Exchange of Thailand halted trading in Energy Absolute stock on Monday, demanding information on its situation.

TRIS Rating, a strategic partner of S&P Global, said in a separate statement that the downgrade to “BB+” from “BBB+” reflects “heightened liquidity risk the company is likely to face in the near term and the corporate governance issue following the accusation” by the SEC. The new rating has a negative outlook.

‘Severe Repercussions’

Equity analysts have also expressed concern about the company’s prospects. Thanachart Securities Pcl now recommends investors sell the stock, and UOB Kay Hian ended coverage, warning Energy Absolute’s ongoing and future projects could face delays, while the fraud allegations will likely have “severe repercussions for the company’s ability to issue bonds and manage debt repayment.”

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“Energy Absolute’s shares will be affected by divestments by some funds, which are required to avoid investing in the company,” Saravut Tachochavalit, an analyst at RHB Securities (Thailand) Pcl, said in a report Monday. “EA’s new bond sales scheduled this month will probably be delayed indefinitely.”

Still, Energy Absolute said in a press briefing Monday that it will proceed with the plan to sell as much as 5.5 billion baht of green bonds on July 23-25.

Following Somphote’s resignation, the company appointed Somchainuk Engtrakul as acting CEO and the chairman of the board effective Sunday. It also named Vasu Klomkliang as acting chief financial officer and Chachawan Jiaravanon and Chatrapol Sripratum as directors. 

The charges against Somphote, Amorn Sapthaweekul, who resigned as deputy CEO, and a third individual relate to Energy Absolute’s procurement of equipment from overseas and software for a solar power plant between 2013 and 2015, the SEC said last week. Both Somphote and Amorn denied any wrongdoing.

—With assistance from Adrian Kennedy.

(Rewrites lead, adds comment and background in sixth to tenth paragraphs.)

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