Korn says THAI Airways should file for bankruptcy to enable rehabilitation
Former Finance Minister and Kla party leader Korn Chatikavanich has proposed that Thai Airways International files for bankruptcy, so the beleaguered national flag carrier can enter rehabilitation under the protection of the country’s bankruptcy law.
The former finance minister said, in his Facebook post today, that this is a golden opportunity for the financially-strapped airline to enter administration, under the bankruptcy process, to clear the way for effective rehabilitation.
He said he supports the idea, which was originally put forward by Mr. Vicha Mahakhun, a top legal expert and former Constitutional Court judge.
Although THAI is unable to service its huge debts, Korn said that the airline capable of carrying on with its business adding, however, that the Government guarantee for the proposed 50 billion baht loan the airline is trying to secure, should only be made available once the airline has entered court sanctioned rehabilitation.
Regarding the huge debts incurred to purchase aircraft, the Kla party leader suggested the airline should negotiate a hair-cut with the creditors, noting that the aviation sector is set to remain depressed for years to come, so there will be fewer buyers for new or used aircraft.
A court sanctioned rehabilitation is a way in which a financially weak business can survive, on conditions which are fair to all parties concerned, said Korn, adding “This is not the time to feel ashamed, but a golden opportunity to start afresh with a viable and achievable structure and strategies.”
Meanwhile, Deputy Prime Minister Anutin Charnvirakul Transport Minister Saksayam Chidchob, Deputy Agriculture Minister Mananya Thaiseth and Deputy Transport Minister Thaworn Senneam met today to discuss the airline’s rehabilitation.
Those at the meeting, dominated by ministers of the Bhumjaithai party, were reported to be against a rescue plan for THAI, and would like the airline to file for bankruptcy prior to rehabilitation.
Finance Minister Uttama Savanayana did not attend the meeting, although the Finance Ministry is a major shareholder in the national flag carrier.
The cabinet is likely to postpone discussion of the rehabilitation issue again at its meeting next Tuesday.