THAI debentures downgraded to default

THAI debentures downgraded to default

Tris Rating has downgraded Thai Airways International's company rating and senior unsecured debentures to default following the Central Bankruptcy Court’s acceptance of THAI’s rehabilitation petition.

“As a result, all of THAI’s debt obligations have been placed on automatic standstill by law, which means THAI has halted all debt services,” the Tris announcement said.

“Tris Rating will reassess the credit ratings on THAI when the company has reached an agreement with all stakeholders on the rehabilitation plan.”

Earlier, Tris Rating downgraded its rating on THAI and the carrier’s senior unsecured bonds to BBB from A.

The Central Bankruptcy Court on Wednesday accepted the THAI case and set the first hearing for August.

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 244.8 billion baht, 30% of which are owned domestically.

The national carrier has also lost its state enterprise status after Vayupak Fund 1 bought a 3.17% stake from the Finance Ministry last Friday.

The stake purchase was at a price of four baht per share, a source said.

The purchase cut the Finance Ministry's holding to 48%, immediately stripping the carrier of its state enterprise status.

State-owned Vayupak Fund 1 is jointly managed by Krungthai Asset Management Plc and MFC Asset Management. 

Do you like the content of this article?

Policeman wounded from ambush

PATTANI: A police corporal heading home after work was ambushed and wounded by gunmen in Sai Buri district on Tuesday night, police said.


TAT banking on e-visas

With Malaysian tourists becoming the first source market to reach 1 million and reopening of more countries in sight, Thai tourism could realise an even stronger rebound among the Asian market if e-visas are adopted and international flights resume.


Loretta Lynn, country music luminary and songwriting pioneer, dies at 90

NEW YORK: Loretta Lynn, America's groundbreaking country titan whose frank lyricism delving into women's experiences with sex, infidelity and pregnancy touched the nerve of a nation, has died. She was 90 years old.