TUESDAY, April 16, 2024

THAI ‘makes progress’ to settle debts, ticket refunds end March 31

THAI ‘makes progress’ to settle debts, ticket refunds end March 31

Thai Airways International (THAI) has made progress in its debt repayment plan and confirms that it is following the outlined plan to settle debts with various creditors. Meanwhile, those passengers owed refunds for tickets have until March 31 to contact the airline.

Thai Airways says it is ready to fulfil its debt obligations, with accumulated cash reserves exceeding 67 billion baht providing sufficient liquidity for its business operations.

This calendar year marks the first instalment for repayment to trade editors known as Group 10, which includes certain creditors holding convertible debentures totalling more than 10 billion baht.

According to Piyasvasti Amranand, who chairs the executive committee for the business recovery plan at Thai Airways International, the recovery of the aviation and tourism industry, coupled with the increasing travel demand, has significantly boosted the company’s income.

Piyasvasti emphasised that the company is now in a financially flexible position and can meet its debt obligations as outlined in the business recovery plan.

“The total debt at the moment is 120 billion baht, and we are committed to repaying the entire amount in 12 instalments. The first instalment is scheduled to be paid in the middle of this year, totalling over 10 billion baht. Following a financial assessment, we are confident that Thai Airways will be able to fulfil the debt repayment plan as scheduled,” Piyasvasti said

The total debt of 120 billion baht for Thai Airways takes three forms:

• Convertible debenture debt at 72 billion baht

• Financial institution debt at 30 billion baht

• Other debts, including trade creditors at 1-2 billion baht

Thai Airways has so far settled some debt with creditors, including nearly completing the repayment of passenger ticket debts totalling 13 billion baht, with only around 300 - 400 million baht left to be settled by March 31. Most of the remaining sums have not been paid due to difficulties in contacting the creditors.

If Thai Airways is unable to contact these creditors by the end of March, the airline will proceed to allocate the remaining debt funds to the bankruptcy court as a demonstration of its readiness to repay debts. Subsequently, if creditors wished to receive debt repayments, they could contact Thai Airways. The airline requests remaining creditors to contact the airline at the THAI Refund Centre, located at the main office building on Vibhavadi Rangsit Road.

The entire remaining debt is scheduled to be gradually repaid in 12 instalments. As for creditors in Group 9, those who are passengers seeking ticket refunds will receive their repayments through normal refund procedures by March 31, 2024, according to the airline.