Bankruptcy court accepts THAI case
published : 27 May 2020 at 14:15
updated: 27 May 2020 at 14:39
The Central Bankruptcy Court has accepted the Thai Airways International (THAI) case and set the first hearing for August - with the restructuring process expected to take five years.
The court said on Wednesday the first hearing would start at 9am on Aug 17.
It ordered its acceptance of the case be announced in at least one daily newspaper at least twice, no more than seven days apart. The court's decision will also be announced online.
It ordered copies of THAI's bankruptcy process request be sent to its creditors and other parties.
The court also stated that creditors of THAI could oppose the restructuring process for up to three days prior to the first hearing. After that, the court would consider that creditors agree with the process.
THAI filed its bankruptcy request with the court on Tuesday, seeking protection to continue business pending debt restructuring and rehabilitation.
The company has outstanding debts totalling 200 billion baht, 30% of which are owned domestically.
Deputy Prime Minister Wissanu Krea-ngam said the court’s decision resulted in an automatic stay, preventing the airline's creditors from suing it in Thailand. They could only file debt repayment petitions.
He said the court would likely take about three months considering the rehabilitation petition. If it agreed with it, it would take another three months to work out a rehabilitation plan that would be then sent to creditors for acknowledgement, and then back to the court for approval.
“It will take about six months to submit a rehabilitation plan to the court. Then the rehabilitation process will take about five years,” Mr Wissanu said.