Although Nok Air shareholders on Wednesday endorsed a new round of capital injection needed for a business rehabilitation almost unanimously, strong doubts emerged over whether Thai Airways International (THAI), a major shareholder, would go along in the end.
While THAI's representatives raised their hands at the meeting to support the 1.7-billion-baht infusion, Somchai Sujjapongse, the permanent secretary of the Finance Ministry, a major THAI stakeholder, sounded a wary note.
Mr Somchai said that if THAI's decision to take part in Nok Air's new fund-raising proves unproductive for improving Nok Air's plight, then "somebody has to be responsible".
He told reporters that the ministry is still studying whether THAI's subscription to new Nok Air shares -- numbering 245 million and valued at 367.5 million baht -- is a viable one.
Mr Somchai's comment came ahead of Wednesday afternoon's THAI board meeting, where the issue was expected to be tabled.
The result of the THAI board meeting was undisclosed at press time. An airline spokeswoman said there would be no announcement after the meeting.
Over the past few days, acting president Usanee Sangsingkeo and other senior THAI executives had talked about the flag carrier's inclination to go along with the capital increase at Nok Air for the sake of retaining THAI's 21.57% stake.
They said THAI would agree to come aboard in view of a clearer business turnaround plan and prospects of Nok Air returning to the black next year after suffering combined losses of 4.93 billion baht from 2014 to June 2017.
THAI insiders noted that the unexpected resignation of Patee Sarasin as chief executive of Nok Air last week contributed to THAI's decision to take new Nok Air shares.
The flag carrier has been critical of Mr Patee's performance and his alleged reluctance to come under the influence of THAI and build cooperation between the two airlines.
Mr Patee, who headed Nok Air since its founding 14 years ago, was immediately succeeded by Piya Yodmani, who was deputy chief executive of Nok Air and chief executive of NokScoot, the medium- to long-haul budget airline owned by Singapore's Scoot and Nok Air.
Although Nok Air shareholders, including THAI, voted for the capital injection, they have until mid-October to confirm the size of the share subscription.
Speaking to reporters after the Nok Air meeting Wednesday afternoon, Mr Piya said the shareholders' endorsement was a positive action.
Nok Air informed the SET that shareholders representing a 0.003% stake opposed the capital injection plan.
Mr Piya said the new funds will be instrumental to getting Nok Air's ongoing business turnaround plan moving forcefully.
According to Mr Piya, the funds expected to be raised from 1.207 billion new shares offered to existing shareholders, if fully subscribed, will be sufficient and not require Nok Air to launch further capital injection rounds in the foreseeable future.
Nok Air can also obtain 600-700 million baht in additional funds from the conversion of warrants issued earlier, according to Nok Air insiders.
The fresh capital will augment the 1.22 billion baht that Nok Air amassed in the previous round of share subscriptions in May. The previous allotment saw THAI refuse to subscribe to 114 million shares.
At that time, the flag carrier cited Nok Air's "unclear" turnaround plan and the likelihood of its subscription payment of 588 million baht contributing to THAI's financial woes.
The shares left unsubscribed by THAI were taken up largely by Nok Air's major individual shareholders, Nuttapol and Thaweechat Jurangkool.
This time around, the Jurangkools have notified Nok Air management of their readiness to do that again -- take up THAI's subscription if THAI baulks, Mr Patee told the Bangkok Post.
Now serving as Nok Air's vice-chairman and retaining his seat on the board, Mr Patee said an executive committee will be created at Nok Air to help guide the carrier through financial turbulence.