Nok Air submits rehabilitation plan
published : 19 May 2021 at 04:03
newspaper section: Business
Nok Air submitted a business rehabilitation plan to the official receiver on Monday after its two extensions expired, with further rehabilitation planned with creditors.
In the plan, the company made a request to the Central Bankruptcy Court for two additional extensions to submit its rehabilitation plan, one month for each extension, said Nok Air chief executive Wutthiphum Jurangkool in a statement.
The latest appointment was set for last Saturday but since it was a public holiday, the submission date was pushed back to Monday.
The official receiver must now arrange a meeting with the airline's creditors to consider the plan.
Loss-ridden Nok Air became the second local carrier, following Thai Airways, to file a rehabilitation petition with the Central Bankruptcy Court on July 30, 2020.
Filing a debt rehabilitation plan helps ensure the airline will return to sustainable operations. The airline aims to complete the process in time for the recovery of the aviation industry in the post-pandemic era.
The airline received approval from the court to rehabilitate the company's business on Nov 4, 2020.
After the Office of the Cabinet Secretary appointed the planners, which was published in the Royal Gazette on Dec 15, 2020, the airline was told to submit its business rehabilitation plan in the next three months or by March 15 but the deadline was extended twice beyond that date.
Besides Mr Wutthiphum, the planners in the rehabilitation plan include Grant Thornton, Prinya Waiwatana, Tai Chong Yih, Kasemsant Weerakun and Chavalit Uttasart.
As of Sept 30, 2020, Nok Air reported revenue of 4.8 billion baht, down 47.7% year-on-year, and a net loss of 3.9 billion. The company reported a loss of 1.6 billion baht a year earlier.
- Nok Air