Experts eyed to write up a rehab plan for THAI

This follows the Cabinet’s approval on Tuesday (May 19) of a proposal that the debt-ridden national carrier enter a bankruptcy court-supervised rehab process. The Cabinet also approved that the Finance Ministry reduce its stake in THAI to less than 50 per cent, which make the airline lose its state-enterprise status.
At the Cabinet meeting on Tuesday, the Transport Ministry proposed three options for the Cabinet to choose in tackling THAI’s financial distress, including the choice of entering the rehab process under Bankruptcy Law. The other two options were for the Finance Ministry to take a Bt54 billion loan to help THAI or to let the airline go bankrupt.
The minister said the decision to make the airline enter a court-supervised rehab process will assure the creditors that THAI will come back stronger after the rehabilitation is completed.
The Transport Ministry is tasked with appointing a panel to draw up the rehab plan, which will be forwarded to the court. If the court approves this plan, the shareholders will have to come together to give it the green light.
Saksayam said he will appoint the panel this week and propose the names of at least 15 members to the premier next week. He added that he has already approached some people who have a background in the aviation industry.
He added that THAI has to file for bankruptcy in both Thailand and US, because up to 35 per cent of its total debt is owed to foreign creditors. He added that most of the debt involves the leasing of aircraft.
THAI will seek financial and legal advisers to proceed with filing for its rehab process in Thai and American courts, he said, adding that he is confident the rehab plan will be completed by next month and THAI can begin working on recovery.