THAI confident in rehabilitation request as court hearing nears

THAI 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 245b baht. 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 said in a separate briefing. Chansin said he was confident he had the support of between 70% and 80% of creditors, with holdouts mostly being individual corporate bonds investors.<br/>