Thai Air gets creditors’ backing for debt restructuring plan

THAI’s creditors approved the airline’s debt restructuring plan, paving the way for payment extension and unpaid interest waiver on at least 170b baht ($5.41b) of its debt. The plan was backed by 91% of creditors at an online meeting, Kitipong Urapeepatanapong, chairman of Baker & McKenzie in Bangkok, the airline’s legal adviser, said by phone on Wednesday. Five people have been appointed as its administrators including acting CEO Chansin Treenuchagron and former CEO Piyasvasti Amranandthe, Thai Airways said after the meeting. “The creditors’ approval offers Thai Airways an opportunity to continue its business,” the airline said. “It will also enable the airline to maintain its competitiveness in the aviation market.” The airline in March proposed a three-year freeze on loan payments and a deferment of bond repayments for six years. To help it return to profitability after posting a record loss of 141 billion baht last year, Bangkok-based Thai Air also plans to cut its workforce by half, sell property and is seeking to raise 50 billion baht in new capital. There were some changes to the original debt proposals but not too many, Kitipong said. These include allowing some creditors to convert their debt into equity. The bankruptcy court will meet on May 28 to consider the creditors’ vote for final approval.<br/>