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Company drafts THAI’s rehab plan, faces criticism

Caitlin Ashworth

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PHOTO: Fifty Sky Shades

The rehabilitation plan for Thai Airways International, or THAI, isn’t looking great. It was presented to the Central Bankruptcy Court yesterday and creditors questioned the expertise of the company chosen to draft the plan.

EY Corporate and Advisory Services, appointed by THAI, faced criticism regarding their technical experience when it comes to drafting a plan to restructure a company, especially one of THAI’s size. Thai PBS reports that a lawyer also brought up the company’s “questionable” track record when it administered a rehabilitation plan to another company that had filed for bankruptcy.

Acting president for THAI, Charnsin Treeuchagron, defended EY, saying it is a world class company. When it comes to lack of experience, Treechagron says airlines in Thailand have not filed for bankruptcy before, Thai PBS reports. The Bangkok Post reports Treeuchagron did not know EY had no experience as a consultant in rehabilitating a company the airline’s size.

The lawyer, who was not identified by Thai PBS, says the service fees charged by EY are unreasonable. An initial payment is planned for 22 million baht with 15 million baht payments each month until the court approves the plan.

Altogether, 16 creditors opposed the plan yesterday. Another hearing on the plan is set for Thursday.

SOURCES: Thai PBS |Bangkok Post

 

 

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1 Comment

1 Comment

  1. Avatar

    Toby Andrews

    Tuesday, August 18, 2020 at 3:23 pm

    Let me guess what the rehab plan is.
    Is it default on all debts, and pay the management executives their handsome salaries to the very last moment?
    Thai airways appointed these EY advisers, so these advisers are not going to state sack all the executives without redundancy payments, and appoint a new management team.
    EY Corporate then would not receive their fee of 22 million baht.
    Of course the creditors are complaining. The EY Corporate will give advice to the advantage of the Thai management, and not the creditors.
    EY Corporate are paid by Thai Airways.

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Caitlin Ashworth is a writer from the United States who has lived in Thailand since 2018. She graduated from the University of South Florida St. Petersburg with a bachelor’s degree in journalism and media studies in 2016. She was a reporter for the Daily Hampshire Gazette In Massachusetts. She also interned at the Richmond Times-Dispatch in Virginia and Sarasota Herald-Tribune in Florida.

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