Central Bankruptcy Court approves Thai Airways debt restructuring plan
The high profile restructuring plan to tackle Thai Airways International’s around 400 billion baht debt was approved by the Central Bankruptcy Court today. While the pandemic hit airlines across the globe, Thai Airways has been recording losses for nearly a decade. The record loss of 141.2 billion baht posted last year prompted the struggling airline to file for bankruptcy protection.
The national carrier made what’s considered a catastrophic decision when they purchased 10 Airbus A340 aircraft for 100 billion baht back in 2003 and 2004. With higher maintenance and fuel costs on the wide-bodied passenger jets, the airline lost money on every flight. Following the airline’s filing for bankruptcy protection and debt restructuring, numerous people from the airline were accused of mismanagement and corruption that led to massive losses.
The debt restructuring plan was approved by creditors last month. The initial May 28 court hearing had been postponed after 2 creditors filed complaints and the airline was ordered by the court to submit more information on the plan. The Central Bankruptcy Court in Bangkok says it approved the plan which covers the airline’s 400 billion baht debt, relying heavily on debt extensions and debt-to-equity conversions. The court did not make any changes to the plan.
SOURCE: Reuters
