The Central Bankruptcy Court has rejected a proposal by the Ministry of Finance to appoint two additional administrators to oversee the rehabilitation of Thai Airways International.
The court made the decision after a hearing on Tuesday, concluding that the current administrators are effectively managing the airline's recovery.
While the court approved two amendments to the rehabilitation plan – reducing the par value of shares to eliminate accumulated losses and accelerating debt repayments – it deemed the proposal to add more administrators unnecessary.
The proposal sought to appoint two additional administrators from the Office of Transport and Traffic Policy and Planning (Panya Chupanich), and the State Enterprise Policy Office (Polchak Nimwatana).
The decision came after creditors had voted in favour of the proposed amendments in November 2023. However, the court's ruling underscores its confidence in the current administration's ability to steer Thai Airways towards a sustainable future.
The two approved amendments are aimed at strengthening the airline's financial position and expediting debt repayment. By reducing the par value of shares, Thai Airways will be able to eliminate significant accumulated losses. Additionally, the accelerated debt-repayment plan will provide some relief to creditors.
The proposal to appoint additional administrators was seen as an attempt by the government to exert more control over the rehabilitation process. However, the court ruled that such a move was unnecessary given the progress made by the current administrators.