Thai Airways challenges lessors’ future rental claims

THAI is challenging lessors’ claims for future rentals agreed under long-term lease agreements, according to a lawyer acting for some of the airline’s creditors. “Thai Airways is challenging the lessors’ claims in part because the lessors’ claims are a little bit different from other trade creditors,” John Frangos, a Bangkok-based partner and deputy director at Tilleke & Gibbins’ dispute resolution practice said. Frangos, who has been briefed on the airline’s Thai-language restructuring plan by his colleagues who speak the language, said that Thai is challenging lessors’ requests for future payments under their lease terms. “Let’s say if you are an OEM or maintenance provider, and you did all this work for Thai two years ago, Thai defaulted and didn’t pay you – you have those debts from those years. But with leases, it is my understanding some lessors have asked for the payments owed under the lease for the entire lease term. Thai is challenging their obligation to pay that.”<br/>