Troubled Thai flag carrier Thai Airways has set a recovery course as its creditors accept the airline’s revised recovery plan
The airline reported to the Stock Exchange of Thailand on Sept. 1 that creditors holding 78.59% of total debt had accepted its plan. The airline said the results would be reviewed by the Central Bankruptcy Court at a Sept. 14 hearing.
Thai Airways said it “thanks creditors for their confidence in the plan”, noting that it will help “lay the foundation for sustainable growth and profitability going forward”.
borrow new funds
Under the revised plan, Thai Airways aims to borrow 12.5 billion baht ($341 million) over six years and an additional 12.5 billion baht in the short term, Chief Financial Officer Chai Iamsiri said.
Previously, the airline was expected to face a cash deficit of 50 billion baht and planned to make up the shortfall by borrowing 25 billion baht from state agencies and the rest from private institutions.
Iamsiri said the airline had discussed the revised plan with shareholders, and the country’s finance ministry backed it.
He added that there are two ways to find funding, one is to seek additional funding through debt-for-equity swaps with current creditors or from shareholders and new investors, and the second is to find new lenders.
Confidence in aviation industry recovery
Amid a recovery in the airline industry and rising booking rates, Thai Airways said it was “confident” that the recovery plan would be successful and materialized within the deadline.
However, Piyasvasti Amranand, chairman of Thai Airways’ committee in charge of the airline’s rehabilitation program, acknowledged that the entry into the court rehab process had affected the airline’s operations and services, leading to negative reviews of the airline by passengers.
Customers are still dissatisfied
For example, many customers have complained about the company’s inability to refund their tickets after it was unable to operate their flights during the Covid-19 pandemic due to constraints in its debt settlement process, he said.
“Thai Airways owes us a refund – aren’t we a creditor either?” one angry would-be passenger wrote on social media.
After the reorganization, the Thai Ministry of Finance, which currently owns 51% of the airline, will hold no more than 50% of the airline, ending its status as a state-owned enterprise.
Troubled Thai flag carrier Thai Airways has set a course for recovery as its creditors have accepted the airline’s revised recovery plan. The airline reported to the Stock Exchange of Thailand on September 1 that creditors holding 78.59% of total debt had accepted its plan. The airline said the results would be reviewed by the Central Bankruptcy Court at a hearing on September 14 . Thai Airways said it “thanks creditors for their confidence in the plan”, noting that it will help “lay the foundation for sustainable growth and profitability of…”.
Troubled Thai flag carrier Thai Airways has set a recovery course as its creditors accept the airline’s revised recovery plan
The airline reported to the Stock Exchange of Thailand on Sept. 1 that creditors holding 78.59% of total debt had accepted its plan. The airline said the results would be reviewed by the Central Bankruptcy Court at a Sept. 14 hearing.
Thai Airways said it “thanks creditors for their confidence in the plan”, noting that it will help “lay the foundation for sustainable growth and profitability going forward”.
borrow new funds
Under the revised plan, Thai Airways aims to borrow 12.5 billion baht ($341 million) over six years and an additional 12.5 billion baht in the short term, Chief Financial Officer Chai Iamsiri said.
Previously, the airline was expected to face a cash deficit of 50 billion baht and planned to make up the shortfall by borrowing 25 billion baht from state agencies and the rest from private institutions.
Iamsiri said the airline had discussed the revised plan with shareholders, and the country’s finance ministry backed it.
He added that there are two ways to find funding, one is to seek additional funding through debt-for-equity swaps with current creditors or from shareholders and new investors, and the second is to find new lenders.
Confidence in aviation industry recovery
Amid a recovery in the airline industry and rising booking rates, Thai Airways said it was “confident” the recovery plan would be successful and materialised within the deadline.
However, Piyasvasti Amranand, chairman of Thai Airways’ committee in charge of the airline’s rehabilitation program, acknowledged that the entry into the court rehab process had affected the airline’s operations and services, leading to negative reviews of the airline by passengers.
Customers are still dissatisfied
For example, many customers have complained about the company’s inability to refund their tickets after it was unable to operate their flights during the Covid-19 pandemic due to constraints in its debt settlement process, he said.
“Thai Airways owes us a refund – aren’t we a creditor either?” one angry would-be passenger wrote on social media.
After the reorganization, the Thai Ministry of Finance, which currently owns 51% of the airline, will hold no more than 50% of the airline, ending its status as a state-owned enterprise.
