Creditors okay revised THAI rehab plan
Creditors of Thai Airways International (THAI) on Thursday approved a new rehabilitation plan in what the airline called a major step forward on its flight back to full recovery. In a statement to the Stock Exchange of Thailand, THAI said participating creditors holding 78.59% of the company’s total debt voted for the plan, which it had originally submitted on July 1. The creditors' meeting was conducted online by the Official Receiver. The result will now be reviewed by the Central Bankruptcy Court, which has scheduled a hearing on Sept 14, the airline said. “This is a significant step in laying the foundation for THAI’s growth and profit-making capability in the future for sustaining THAI as the national flag carrier to support and promote the recovery of the Thai economy and society,” it said. The submitted to the Central Bankruptcy Court in July included a plan to borrow 12.5b baht over six years and another 12.5b in the shorter term. It also calls for debt-for-equity swaps totalling 37b baht, or about 25% of its more than 100b baht in debts. Piyasvasti Amranand, chairman of the THAI panel overseeing the courtmonitored debt plan, said on July 1 that the amended version was needed after the airline reported a better-than-expected recovery from the financial crisis. In the previous plan, THAI expected to face a cash deficit of 50b baht and therefore planned to borrow 25b from state-owned lenders and the rest from private financial institutions. However, since the airline realised it would be difficult to successfully obtain the full amount of loans required, it first tried to find more cash by selling a number of assets and old aircraft, which has brought in more than 9b baht.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-09-02/star/creditors-okay-revised-thai-rehab-plan
https://portal.staralliance.com/cms/logo.png
Creditors okay revised THAI rehab plan
Creditors of Thai Airways International (THAI) on Thursday approved a new rehabilitation plan in what the airline called a major step forward on its flight back to full recovery. In a statement to the Stock Exchange of Thailand, THAI said participating creditors holding 78.59% of the company’s total debt voted for the plan, which it had originally submitted on July 1. The creditors' meeting was conducted online by the Official Receiver. The result will now be reviewed by the Central Bankruptcy Court, which has scheduled a hearing on Sept 14, the airline said. “This is a significant step in laying the foundation for THAI’s growth and profit-making capability in the future for sustaining THAI as the national flag carrier to support and promote the recovery of the Thai economy and society,” it said. The submitted to the Central Bankruptcy Court in July included a plan to borrow 12.5b baht over six years and another 12.5b in the shorter term. It also calls for debt-for-equity swaps totalling 37b baht, or about 25% of its more than 100b baht in debts. Piyasvasti Amranand, chairman of the THAI panel overseeing the courtmonitored debt plan, said on July 1 that the amended version was needed after the airline reported a better-than-expected recovery from the financial crisis. In the previous plan, THAI expected to face a cash deficit of 50b baht and therefore planned to borrow 25b from state-owned lenders and the rest from private financial institutions. However, since the airline realised it would be difficult to successfully obtain the full amount of loans required, it first tried to find more cash by selling a number of assets and old aircraft, which has brought in more than 9b baht.<br/>
