Bankruptcy court accepts THAI’s protection petition for consideration

(FILES) In this file photo taken on April 8, 2016 a Thai Airways Boeing 747 plane prepares to land at Changi International Airport in Singapore. – Thailand’s cash-strapped national carrier will look to undergo a restructuring through the kingdom’s bankruptcy court, premier Prayut Chan-O-Cha said May 19, 2020, as the stricken company is battered by the crash in tourism caused by the coronavirus.

Thailand’s Central Bankruptcy Court today has accepted Thai Airways International’s bankruptcy protection petition for consideration and set the first hearing for August 17th.

 

The court’s decision to accept the ailing national flag carrier’s petition will be publicly announced in a newspaper twice, seven days apart, and copies of THAI’s petition will be distributed to all the airline’s creditors, the Legal Execution Department and the Office of Securities Exchange Commission.

Creditors have the right to object to the bankruptcy protection petition before the court’s first enquiry hearing.

Now that the Central Bankruptcy Court has accepted THAI’s petition for consideration, the beleaguered airline will come under the protection of the Thai bankruptcy law, and will be granted protection from all lawsuits filed by any creditor demanding debt repayment.

The initial hearing will take up to 2 months from the filing of the petition by THAI. If the court approves the protection petition, the term of the airline’s board will end and it will be replaced by a court-sanctioned team, who will craft the rehabilitation plan, which could take an additional 3 months.

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