Thailand’s Central Bankruptcy Court, this morning (Monday), approved Thai Airways International Public Company’s (THAI) debt rehabilitation filing and its rehabilitation planners.
In approving the debt-stricken national flag carrier’s rehabilitation filing, the court ruled that the company is capable of generating revenues because of its business structure and the fact that the company has qualified human resources, extensive experience in the aviation industry and a widely-recognized reputation.
The court noted that the company’s financial woes do not stem from its operations, but from intense competition in the aviation sector and the fallout of COVID-19 pandemic, which has affected the whole airline sector.
Furthermore, the court said that several creditors, who have leased aircraft to THAI, support its debt rehabilitation filing and have agreed to suspend or postpone lease payments, in order that the airline can continue to operate.
The court also said THAI has expressed, in writing, its support of the rehabilitation filing and the appointment of the planners, adding that THAI has been negotiating with and has received support from institutional creditors, aircraft leasing companies, its allied airlines as well as governmental.
The court recognized THAI’s huge level of debt and its inability to service that borrowing and agreed that the national flag carrier has the right to file for rehabilitation, as it dismissed the unsubstantiated allegation by some creditors that THAI had not been honest in filing for rehabilitation.
The court said that its approval of the rehabilitation plan is just a legal process to force all creditors and the debtor to enter into agreements to resolve the problem, with planners acting on the debtor’s behalf charged with working out a rehabilitation plan to ensure fair treatment of the creditors.
The planners are EY Corporate Advisory Service Company, Air Chief Marshal Chaipruek Diyasirin, Mr. Phraphan Saleeratthavipark, Mr. Boonthak Wangcharoen, Mr. Piyasvasti Amranand, Mr. Chakkrit Parapanthakul and Mr. Charnsilp Trinutchakorn.
