Fri, September 24, 2021

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Seven creditors oppose Nok Air’s rehabilitation plan

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The business rehabilitation plan that Nok Air Plc had submitted to the Central Bankruptcy Court on July 30 was approved by a majority of the creditors, who own 76.72 per cent of the company’s debt, the airline CEO Wutthiphum Jurangkool said on Friday after the latest court hearing on August 26.

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The company had received a Central Bankruptcy Court order to rehabilitate the business on November 4, 2020 and submitted the first draft of the plan on May 17 this year, followed by the amended version on July 30.

Among the seven creditors who opposed the amended plan during Thursday's hearing were Kasikornbank and Bangkok Bank from whom Nok Air had borrowed to repay the debt of Nok Scoot, its affiliate airline when it went out of business in June last year. The two banks said they were yet to discuss the interest rate of the loan but the rehabilitation plan stipulates that no debt would be repaid until the plan manager is appointed.

Other opposing creditors included an airplane renting company and creditors of air ticket fees.

The court has scheduled the next hearing for September 6.

Published : August 28, 2021