Nok Air plans capital and debt restructuring to avoid delisting

Nok Air has outlined plans for a capital and debt restructuring alongside its ongoing business rehabilitation process to improve its financial health and avoid being delisted from the Stock Exchange of Thailand (SET). On 9 September, the SET warned Nok that it was subject to possible delisting and has given the airline one month until 8 October to set a timeline to implement its rehabilitation plan. In a 10 September disclosure to the Stock Exchange of Thailand, the carrier outlined measures it said it would take to remedy its negative shareholder equity and return to profitability. The measures include the “improvement” of its fleet, including the types of aircraft it operates, to make it “suitable for current situation” and reduce costs, especially on fuel and maintenance. It adds that it will negotiate to “significantly” reduce both short- and long-term aircraft lease rental rates and amend lease agreements accordingly, as well as restructure debts with all groups of creditors. That process has already been underway since at least last month, according to a person with direct knowledge of the matter. The carrier also indicates it will undertake organisational restructuring to be “effective and efficient”, as well as to “improve management direction and communication”.<br/>