webfact Posted May 27, 2020 Share Posted May 27, 2020 Thai Airways debt rehabilitation request accepted by bankruptcy court Thai Airways idle airplanes are seen parked on the tarmac of Suvarnabhumi Airport in Bangkok, Thailand May 25, 2020. REUTERS/Jorge Silva BANGKOK (Reuters) - Flagship carrier Thai Airways International Pcl <THAI.BK>'s request for debt rehabilitation at the bankruptcy court has been accepted, the Court of Justice said on Wednesday. The court's announcement gives the troubled airline an automatic stay on its debts. The first day of hearings will be on August 17, the court said in a statement, adding that creditors may submit objections three days before the first hearing. (Reporting by Panarat Thepgumpanat and Chayut Setboonsarng; Editing by Ed Davies) -- © Copyright Reuters 2020-05-27 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates Link to comment Share on other sites More sharing options...
RichardColeman Posted May 27, 2020 Share Posted May 27, 2020 Pretty sure there will be quite a few claims not making an appearance in court as they were 'delayed' in court processing 3 hours ago, webfact said: The first day of hearings will be on August 17, the court said in a statement, adding that creditors may submit objections three days before the first hearing. 2 Link to comment Share on other sites More sharing options...
Popular Post mmail2you Posted May 27, 2020 Popular Post Share Posted May 27, 2020 The delay is so the Government can get there 3% share sell off money before any debtors. 6 1 1 Link to comment Share on other sites More sharing options...
Popular Post chainarong Posted May 27, 2020 Popular Post Share Posted May 27, 2020 It generally ends up that the appointed receiver sorts out all the problems, not the court. 3 Link to comment Share on other sites More sharing options...
Popular Post holy cow cm Posted May 27, 2020 Popular Post Share Posted May 27, 2020 What a joke. anyway you look at it it is still majority owned by the state. Just shifting shares over to other state owned things doesn't change a thing. But ofcourse the courts would accept it when their puppet strings are pulled. 4 Link to comment Share on other sites More sharing options...
buick Posted May 27, 2020 Share Posted May 27, 2020 it looks like the main chunk of debt is 74bn in debentures. i wonder who owns those. one would assume the holders of that debt would be calling the shots. not the lowly shareholders with a current market value of 10bn. 1 Link to comment Share on other sites More sharing options...
Popular Post natway09 Posted May 27, 2020 Popular Post Share Posted May 27, 2020 The court may just appoint "International Receivers" due the the amount of offshore debt which would open the door to some really good, overdue housekeeping. 3 1 Link to comment Share on other sites More sharing options...
condo62 Posted May 27, 2020 Share Posted May 27, 2020 Any idea what this means for people holding tickets of cancelled flights or refund requests....? 1 1 1 Link to comment Share on other sites More sharing options...
topt Posted May 27, 2020 Share Posted May 27, 2020 12 minutes ago, natway09 said: The court may just appoint "International Receivers" due the the amount of offshore debt which would open the door to some really good, overdue housekeeping. Since it always seems to appear that the receivers do quite well financially out of these kind of proceedings what's the betting they will keep it "in house" as it were.......... Link to comment Share on other sites More sharing options...
Srikcir Posted May 27, 2020 Share Posted May 27, 2020 54 minutes ago, buick said: it looks like the main chunk of debt is 74bn in debentures. i wonder who owns those. one would assume the holders of that debt would be calling the shots. not the lowly shareholders with a current market value of 10bn. What if the majority shareholder Thailand Ministry of Finance holds the "main chunk of debt?" Link to comment Share on other sites More sharing options...
rasmus5150 Posted May 27, 2020 Share Posted May 27, 2020 43 minutes ago, condo62 said: Any idea what this means for people holding tickets of cancelled flights or refund requests....? Don't know about refunds. But if you have a rescheduled flight, you should not have any problems. Just make sure you fly by the end of 2020. Link to comment Share on other sites More sharing options...
Popular Post Thaidaddy Posted May 27, 2020 Popular Post Share Posted May 27, 2020 Just wish to clarify what happens in the rehab court: 1. The transfer of 3% shares and receipt of cash has nothing to do with the courts, simply takes Thai Airways out of the SOE Act 2. The company will be the Planner if they get at least 33.33% of the debt vote. 3. A creditor can appoint a Planner if more than 66.66% vote for them. 4. Shareholders have no power in a rehab (except to receive dividends) 5. Thai have appointed a new management team who will control the plan. 6. The plan must treat all creditors (within their class of claim) equally 7. Internationals cannot be appointed as Planner but can advise the Planner 3 Link to comment Share on other sites More sharing options...
Popular Post nuckyt77 Posted May 27, 2020 Popular Post Share Posted May 27, 2020 Another Thai soap opera. Never ever invest in Thailand or in a Thai company...that is the main lesson one can learn. I rent....i have a very old car and my money is and will stay oversea. Always go by this and you will be fine. 5 1 1 Link to comment Share on other sites More sharing options...
hioctane Posted May 27, 2020 Share Posted May 27, 2020 9 minutes ago, nuckyt77 said: Another Thai soap opera. Never ever invest in Thailand or in a Thai company...that is the main lesson one can learn. I rent....i have a very old car and my money is and will stay oversea. Always go by this and you will be fine. Thai baht has been the best performing currency in SEA. Your only other option is the USD. 1 Link to comment Share on other sites More sharing options...
hioctane Posted May 27, 2020 Share Posted May 27, 2020 1 hour ago, condo62 said: Any idea what this means for people holding tickets of cancelled flights or refund requests....? Bankruptcy does not equal belly up. They are still in business. There are many levels of bankruptcy. This level just pauses the debt so they can restructure the business in hopes of turning a profit again. 1 Link to comment Share on other sites More sharing options...
wordchild Posted May 27, 2020 Share Posted May 27, 2020 (edited) 1 hour ago, buick said: it looks like the main chunk of debt is 74bn in debentures. i wonder who owns those. one would assume the holders of that debt would be calling the shots. not the lowly shareholders with a current market value of 10bn. sadly, most of the debenture holders are small savings institutions of various kinds; eg company provident funds, small co-ops, pension type assets of various kinds. Mostly held by Thai is my understanding. Edited May 27, 2020 by wordchild Link to comment Share on other sites More sharing options...
Thaidaddy Posted May 27, 2020 Share Posted May 27, 2020 Thai have already extended the tenure of paid tickets and hopefully will extend again. This will be one class of creditors and, with some conditions, this will not be a big cost to the new Thai Airways. Mileage program and member seniority will be another class and will require special attention as these travellers are their loyal repeat volume clients which they will need to ensure are treated fairly otherwise they will transfer to OneWorld. 2 Link to comment Share on other sites More sharing options...
rawaimike Posted May 27, 2020 Share Posted May 27, 2020 Well said and spot on, I'm the same.... Link to comment Share on other sites More sharing options...
orchis Posted May 27, 2020 Share Posted May 27, 2020 Rearranging the deck chairs on the Thaitanic. 1 Link to comment Share on other sites More sharing options...
mrfill Posted May 27, 2020 Share Posted May 27, 2020 Presumably this means the creditors cannot collect the debt or seize goods until late August at the earliest. Link to comment Share on other sites More sharing options...
Popular Post wordchild Posted May 27, 2020 Popular Post Share Posted May 27, 2020 (edited) Selling the 3% was not about recouping any money for the Government, it was peanuts, as referenced above. The shares have little value (300 mil USD is the total share value of Thai Air) the big issue is the debt which is a significant multiple of that. The share sale was really a device that allowed the Thai Govt to extricate themselves from any (further) obligation to Thai Air as, subsequent to that sale, the company could no longer be classed as state owned. So, effectively, the Government was off the hook and could put pressure on other creditors to accept losses. That is the real story here. I suspect, that as more of this comes out, the Thai Government will be under considerable scrutiny for the way in which it has behaved. The whole thing is a mess, not the neat little package they are trying to spin! Edited May 27, 2020 by wordchild 2 1 Link to comment Share on other sites More sharing options...
bristolgeoff Posted May 27, 2020 Share Posted May 27, 2020 be interesting to see how it will all come out in the wash.for sure the government owns most of the company or airline.it will survive Link to comment Share on other sites More sharing options...
dallen52 Posted May 27, 2020 Share Posted May 27, 2020 Debt rehabilitation. That's a new way to describe financial manipulation... Clears the way for the government to do many things especially after a partial share holding sell off to take it below the 51% majority holder level. Link to comment Share on other sites More sharing options...
dallen52 Posted May 27, 2020 Share Posted May 27, 2020 2 hours ago, condo62 said: Any idea what this means for people holding tickets of cancelled flights or refund requests....? Well they are advertising international flights to Bangkok from July 1st. Albeit at $1000 dearer than the one way credit they hopefully are still holding for my March 27th flight they cancelled. Melbourne to Bangkok. Link to comment Share on other sites More sharing options...
dallen52 Posted May 27, 2020 Share Posted May 27, 2020 1 hour ago, wordchild said: Selling the 3% was not about recouping any money for the Government, it was peanuts, as referenced above. The shares have little value (300 mil USD is the total share value of Thai Air) the big issue is the debt which is a significant multiple of that. The share sale was really a device that allowed the Thai Govt to extricate themselves from any (further) obligation to Thai Air as, subsequent to that sale, the company could no longer be classed as state owned. So, effectively, the Government was off the hook and could put pressure on other creditors to accept losses. That is the real story here. I suspect, that as more of this comes out, the Thai Government will be under considerable scrutiny for the way in which it has behaved. The whole thing is a mess, not the neat little package they are trying to spin! I mentioned previously that you had to look at the small print. Certain things had to happen to allow the government to minimize it's risks and exposure and allow the next course of action. May well eventuate that major airline debts are written off and someone has the ownership of an airline with minimal debts. No expert on Thai receivership laws, but watch this space...!! Link to comment Share on other sites More sharing options...
Searat7 Posted May 27, 2020 Share Posted May 27, 2020 I read that 53 of their planes are leased including 30 from Airbus. Among THAI Airways’ leased planes are six A380s, fifteen A350-900s, fifteen A330-300s, and twenty A320-200s. This would seem to indicate some Airbus planes are leased from leasing companies. The A-320’s belong to Thai Smile which has not really been mentioned. Will be interesting to see how the leased planes are handled. Source : Simple Flying. Link to comment Share on other sites More sharing options...
oobar Posted May 27, 2020 Share Posted May 27, 2020 So, does this mean that the Thai bigwigs who demanded and received USD millions in bribes from Rolls Royce to use its engines will be squeezed for the return of the money they stole from Thai taxpayers? Anybody know the current status of that typical lowlife greedy Thai crime? Link to comment Share on other sites More sharing options...
GAZZPA Posted May 27, 2020 Share Posted May 27, 2020 2 hours ago, hioctane said: Bankruptcy does not equal belly up. They are still in business. There are many levels of bankruptcy. This level just pauses the debt so they can restructure the business in hopes of turning a profit again. I am not an expert but it makes sense to me that they will file bankruptcy to get the debt written off so they can wipe the slate clean with a new "China airways". Link to comment Share on other sites More sharing options...
Susco Posted May 27, 2020 Share Posted May 27, 2020 2 hours ago, Thaidaddy said: 7. Internationals cannot be appointed as Planner but can advise the Planner And that is the main point, as international creditors also can not claim any debts, which would be possible if bankruptcy was approved. So this is just another example of, we the government will never pay our debts to international creditors Link to comment Share on other sites More sharing options...
Mayhem11 Posted May 27, 2020 Share Posted May 27, 2020 Debenture holders are usually secured creditors. Are they constrained by Thai law? Link to comment Share on other sites More sharing options...
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