Thu, May 26, 2022

business

THAI seeks 25-billion-baht to pay off some debts ahead of rehab plan


Thai Airways International (THAI) is planning to seek a new 25-billion-baht loan to pay off some of its debts ahead of the schedule set under the rehabilitation scheme.

A source said THAI has been effective in cutting expenses as well as managing costs and has even been able to generate revenue despite the ongoing Covid-19 crisis.

“If THAI gets the 25-billion-baht loan, it will be able to complete its rehabilitation sooner,” the source said.

The airline has negotiated a longer repayment period and revolving credit line along with quarterly interest payment with five private financial institutions and 87 cooperatives who are owed 45 billion baht.

The new loan will be taken under the following conditions:

• The interest rate must not exceed the annual minimum loan rate (MLR).

• The loan period should be set at no less than six years with semi-annual debt repayments starting in the third year.

• Expenses related to the loan and other conditions should be based on a mutual agreement between THAI and the creditors.

• The loan granter will have the right to buy THAI stocks worth the loan amount at 2.55 baht per share from the par value of 10 baht per share.

For the loan, THAI is ready to offer the following assets as collateral:

• Land and THAI headquarters building on Vibhavadi-Rangsit Road in Bangkok.

• Land and buildings in Don Mueang

• Aircraft and related equipment

• All THAI-owned properties in Thailand and overseas

Piyasvasti Amranand, who is overseeing the administration of THAI’s rehabilitation, said the airline has enough assets to use as collateral, such as 42 aircraft and properties both here and overseas.

He said the airline has been holding discussions on rehabilitation operations and reporting to creditors every month, adding that the move to use assets as collateral will benefit all creditors.

He also said he expects THAI to receive the first instalment of the 25-billion-baht loan within March.

“These funds should be enough for the company’s rehabilitation as the aviation industry is recovering and THAI has been able to cut expenses and generate earnings,” he said.

Published : February 13, 2022

By : THE NATION