THAI Receives Bankruptcy Court Approval For Rehabilitation Plan Revision
Date
10/23/2022 8:38:49 AM
(MENAFN- Bangladesh Monitor) Dhaka: THAI Airways is looking to forge a strong recovery following a couple of difficult years amid the challenging backdrop of the coronavirus pandemic.
Reports claimed, a vote held on October 20 by Thailand's Central Bankruptcy Court saw the Star Alliance carrier receive strong support for the revision of its rehabilitation plan. Indeed, 78.6 per cent of the creditors involved are said to have backed the move, including those from the Ministry of Finance.
Thai Airways will be hoping that this decision will set it up nicely for a strong post-pandemic recovery. According to reports, strong performance from the airline in the coming years could see it return to the stock market as early as 2025.
Thai Airways' rehabilitation plan has been an ongoing matter that predates the coronavirus pandemic. Indeed, the carrier initially filed for bankruptcy in 2019, amid debts that exceeded USD 6.4 billion (THB 245 billion, in the local currency).
Earlier in 2022, the airline filed for the revision in an attempt to exit the plan sooner.
A key part of the revisions that Thailand's Central Bankruptcy Court has approved regarding Thai Airways' rehabilitation plan is the fact that the carrier is not asking for as much money. Indeed, the funds requested will now only be THB 25 billion (USD 650 million) by 2024, compared to THB 50 billion (USD 1.3 billion) as initially allowed.
Going forward, the Bangkok-headquartered airline is aiming to increase its capital, as well as undertaking debt-to-equity swaps. It will do so in collaboration with its shareholders and creditors, with the assistance of a financial advisor.
While recent years have certainly been challenging for Thai Airways, the carrier does now seem to be in a more sustainable position. Indeed, reports added that it is now registering average passenger load factors in the region of 80 per cent. Furthermore, it has amassed a THB 20 billion (USD 523 million) cumulative cashflow.
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