Bankrupt Thai Airways seeks fresh cash injection of $1.65 billion

Thailand’s struggling national carrier Thai Airways is seeking a capital infusion of as much as 50 billion baht ($1.65 billion) under a debt restructuring plan which is due to be submitted on March 2 to the Central Bankruptcy Court in Bangkok, Bloomberg News cited people familiar with the matter.

The fresh funds may be raised through equity, loans or convertible securities, the report said, but will need to be approved by the airline’s many creditors and the court. Under the debt rehabilitation plan discussed by court-appointed advisors, banks and bondholders will have to take minimum cut on their exposure, the people said, according to the report.

Thai Airways, which posted a record loss of $4.7 billion last year, is seeking to reduce its liabilities from 336.7 billion baht and return to profit once the Covid-19 pandemic subsides. The airline has sold stakes in some units, cut staff and opened its flight simulators to the public to generate additional revenue and cushion the blow from an unprecedented hit to the global tourism and travel industry.

Finance ministry to scrutinise the restructuring plan

Thailand’s ministry of finance, the largest shareholder of Thai Airways, will look at the restructuring plan in detail once it is submitted to the court to see if it is in line with government rules and can be supported, the State Enterprise Policy Office said. The office will also consult the Public Debt Management Office before advising the government on its stance, it said.

The airline’s losses last year included one-time expenses of almost 92 billion baht from an employee separation plan and impairment losses on aircraft, right-of-use assets and aircraft spare parts, the airline said last week. The widening losses sent Thai Airways equity to a negative 127 billion baht at the end of last year, it said.

Thai Airways shares, up 29% this year, were suspended last week as the Stock Exchange of Thailand considered whether the company is subject to delisting because of its negative equity. The bourse will decide on a possible delisting by March 7.



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Thailand’s struggling national carrier Thai Airways is seeking a capital infusion of as much as 50 billion baht ($1.65 billion) under a debt restructuring plan which is due to be submitted on March 2 to the Central Bankruptcy Court in Bangkok, Bloomberg News cited people familiar with the matter. The fresh funds may be raised through equity, loans or convertible securities, the report said, but will need to be approved by the airline’s many creditors and the court. Under the debt rehabilitation plan discussed by court-appointed advisors, banks and bondholders will have to take minimum cut on their exposure, the...

Thailand’s struggling national carrier Thai Airways is seeking a capital infusion of as much as 50 billion baht ($1.65 billion) under a debt restructuring plan which is due to be submitted on March 2 to the Central Bankruptcy Court in Bangkok, Bloomberg News cited people familiar with the matter.

The fresh funds may be raised through equity, loans or convertible securities, the report said, but will need to be approved by the airline’s many creditors and the court. Under the debt rehabilitation plan discussed by court-appointed advisors, banks and bondholders will have to take minimum cut on their exposure, the people said, according to the report.

Thai Airways, which posted a record loss of $4.7 billion last year, is seeking to reduce its liabilities from 336.7 billion baht and return to profit once the Covid-19 pandemic subsides. The airline has sold stakes in some units, cut staff and opened its flight simulators to the public to generate additional revenue and cushion the blow from an unprecedented hit to the global tourism and travel industry.

Finance ministry to scrutinise the restructuring plan

Thailand’s ministry of finance, the largest shareholder of Thai Airways, will look at the restructuring plan in detail once it is submitted to the court to see if it is in line with government rules and can be supported, the State Enterprise Policy Office said. The office will also consult the Public Debt Management Office before advising the government on its stance, it said.

The airline’s losses last year included one-time expenses of almost 92 billion baht from an employee separation plan and impairment losses on aircraft, right-of-use assets and aircraft spare parts, the airline said last week. The widening losses sent Thai Airways equity to a negative 127 billion baht at the end of last year, it said.

Thai Airways shares, up 29% this year, were suspended last week as the Stock Exchange of Thailand considered whether the company is subject to delisting because of its negative equity. The bourse will decide on a possible delisting by March 7.



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