THAI’s revised rehabilitation plan set for take-off after Bankruptcy Court nod
The Central Bankruptcy Court on Thursday approved a request by Thai Airways International (THAI) to revise its rehabilitation plan as the national carrier begins to fly high this year on the wings of a fast recovery.
The court verdict came after most creditors of the financially troubled airline endorsed the revised plan, according to a THAI source.
At their recent meeting, 78.6 per cent of the creditors, including the Finance Ministry, voted to support THAI’s revised rehabilitation plan in the hopes that a quick recovery would make it possible for the airline to resume stock market trading by 2025, the source said.
THAI will next hire a financial adviser company to prepare for debt-to-equity swaps and a capital increase involving existing creditors and shareholders.
The revised plan calls for new funds of no more than 25 billion baht by 2024, instead of 50 billion as permitted by the court under the original restructuring plan.
After being mired in debt for years, the national carrier is now flying into a welcome cloud of recovery, with its average passenger load soaring to 80 per cent and cumulative cashflow of about 20 billion baht.
In July, THAI petitioned the Central Bankruptcy Court, seeking to revise its rehabilitation plan with the hopes of exiting the plan before the 2025 deadline.
The airline filed for bankruptcy protection in late 2019 after reporting massive debts of 245 billion baht. The Cabinet in May 2020 gave the rehabilitation plan the green light under the Bankruptcy Act, which was later approved by the Central Bankruptcy Court.