Thai Airways confident in rehabilitation request as court hearing nears

Thai Airways confident in rehabilitation request as court hearing nears

A Thai Airways International jet sits parked on the tarmac of Suvarnabhumi airport. (Photo by Wichan Charoenkiatpakul)
A Thai Airways International jet sits parked on the tarmac of Suvarnabhumi airport. (Photo by Wichan Charoenkiatpakul)

Thai Airways International Plc expects the Central Bankruptcy Court to allow for a rehabilitation process after a hearing next month on its restructuring proposals, its legal advisor told a shareholders meeting on Friday.

"We have not had any obstacles so far because creditors have been cooperative," Kitipong Urapeepatanapong said.

The court accepted the airline's petition for bankruptcy protection in May, giving it an automatic stay on debt repayments and setting Aug 17 for its first hearing.

THAI would restructure debt worth around 245 billion baht.

Mr Kitipong expects the court to accept the airlines' request and appoint a committee to design the rehabilitation plan.

After the plan is drawn up, it will be submitted to creditors and the court for approval next year, he said.

Rehabilitation administrators can begin restructuring in May or June 2021 in a process that could take up to seven years.

While some countries have not accepted the automatic stay, but airplane lessors have been supportive due to the pandemic, THAI Acting President Chansin Treenuchagron told reporters in a separate briefing.

The collapse of travel demand and the grounding of flights across the globe due to the coronavirus outbreak has tipped several industry players over the edge.

On Thursday, budget carrier Nok Airlines Plc, of which Thai Airways has a 13% stake, submitted a petition for bankruptcy protection.

Mr Chansin said he was confident he had the support of between 70% and 80% of creditors, with holdouts mostly being individual corporate bonds investors.

Mr Chansin said his focus was on Aug 17, where the airline would have to justify its need for the rehabilitation and show planners are reliable and had aviation experience.

Asked about the carrier's liquidity he said it was "manageable."


Do you like the content of this article?
COMMENT (50)

Army worried illegal border crossers are spreading Covid-19

PHITSANULOK: Thais working in Myanmar who wish to return home should do so only through two permanent border checkpoints, in Tak's Mae Sot district and Chiang Rai's Mae Sai, and go immediately into state quarantine to stem the spread of Covid-19, 3rd Army commander Lt Gen Apichet Suesat said on Monday.

18:00

Iran lays to rest nuclear scientist, vows to carry forward work

TEHRAN: Iran laid to rest a nuclear scientist in a funeral befitting a top "martyr" Monday, vowing to redouble his work after an assassination pinned on arch-foe Israel.

17:45

Protest leaders report to police, hear lese majeste charges

Five leaders of the People's Movement reported to Chana Songkhram police on Monday to hear charges of lese majeste brought under Section 112 of the Criminal Code over the demonstration at Sanam Luang on Sept 19-20.

17:25