Thai Airways petitions overseas creditors not to confiscate its aircraft

Thailand’s beloved but beleaguered national carrier is appealing to creditors in Switzerland, Japan and Germany not to seize its aircraft, while a similar request is being prepared for US creditors. If each country’s court approves the petition, Thai Airways assets will be protected against seizure when they fly into their jurisdictions. In particular, the airline will not risk having its aircraft confiscated overseas.

Last month, the ailing carrier filed for bankruptcy protection, with the request scheduled to be reviewed by Thailand’s Central Bankruptcy Court on August 18. If approved, implementation of a restructuring plan agreed by five members of the Thai Airways board can go ahead.

Government spokeswoman Narumon Pinyosinwat says talks are set to take place with creditors before then as it’s vital they do not raise objections to the plan. She says any such opposition would complicate the plan’s implementation and must be avoided.

Thai Airways accumulated up to 12 billion baht in arrears last year, bringing its total unsettled debt to 244 billion baht.  The airline has postponed the resumption of its international schedule from July to August, at the earliest. The government and Civil Aviation Authority have not yet announced an opening of the borders, how it will work, who they will allow in, or the restrictions they could impose.

SOURCE: Chiangrai Times | Bangkok Post