ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Transportation

Thai court approves Thai Airways' request for rehabilitation

Long-troubled airline receives go-ahead to restructure $7.8bn debt load

Since 2012, Thai Airways has managed to climb out of the red for only one year, 2016. (Photo by Akira Kodaka)

BANGKOK (Reuters) -- Thailand's Central Bankruptcy Court approved on Monday Thai Airways International's request to restructure its debt as part of bankruptcy proceedings, Judge Kampol Roongrat said.

The court's decision will allow the airline to move ahead with plans to restructure 245 billion baht ($7.8 billion) worth of debt, a process that would take three to five months.

The decision comes as the coronavirus fallout has added to the woes of an airline which has been struggling since 2012.

"More than half of creditors supported restructuring," the airline's acting president Chansin Treenuchagron told reporters. "We will be in negotiations with creditors this quarter and a plan will be ready by the first quarter of next year."

After three hearings, some creditors withdrew their opposition to the restructuring following negotiations with the airline.

Once a restructuring plan has been agreed on by the creditors and the court, another committee would be set up to execute it in a process that could take up to 7 years, the airline previously said.

Even before the coronavirus led to the grounding of flights across the globe, Thai Airways was in difficulty. It posted losses every year after 2012, except in 2016 and reported losses of 12.04 billion baht in 2019.

The court in May accepted the airline's request for bankruptcy protection, giving it a stay on debt. The Thai government later reduced its stake in the carrier to 47.86%, ending the company's status as a state-enterprise.

Last week, Singapore Airlines said it would cut 4,300 positions, or around 20% of its staff, due to the debilitating impact of the coronavirus pandemic. The International Air Transport Association has forecast it will take until 2024 for global passenger traffic to return to pre-pandemic levels.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media