Cooperatives, financial institutions mount pressure on THAI for Bt63-bn debt repayment

By The Nation

 

 

Savings cooperatives and local financial institutions will work together in seeking Bt63-billion debt repayment from the bankrupt Thai Airways International (THAI), Poramate Intarachumnum, chairperson of Cooperative League of Thailand, said.

 

He said the national flag carrier owes Bt43 billion to 87 savings cooperatives and another Bt20 billion to local financial institutions, banks, investment funds and assurance companies. 

 

The two have agreed to work together in order to increase the bargaining power of local creditors, he said.

 

The Central Bankruptcy Court in Bangkok accepted the bankruptcy protection case filed by THAI on May 27 while the Finance Ministry has reduced its holdings to below 50 per cent, resulting in THAI losing state enterprise status. THAI's debts are estimated to be about Bt 200 billion, excluding debt owed to frequent flying air passengers.

 

Poramate said that cooperatives, banks, investment funds and assurance companies will appoint two sets of committees for the debt collection task.

 

The first committee will follow up on the rehabilitation of THAI. “We will oppose the rehab committee who have a bad record in financial matters or management ,” he said.

 

The second committee will seek redemption of THAI debentures. If the national carrier could repay savings cooperatives' debts within a 10-year timeframe, it would be acceptable. If debt repayment could be made at Bt4 billion a year, then it will not financially hurt 3 million members of the 87 cooperatives, he said.

 

The cooperative is preparing its position and will send its options for discussions with THAI as the bankruptcy court is set to open its first hearing on THAI’s rehabilitation plan on August 17, he added.

 

Source: https://www.nationthailand.com/business/30389206

 

-- © Copyright The Nation Thailand 2020-06-08

 

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If the Government are unwilling to inject a huge rescue cash injection into this state owned enterprise then there is only one possible conclusion to this debacle 

 

and lets not forget that Thai is a mini version of the country in general, same type of people are running the show - the end is likely to be similar - many will walk away very rich indeed leaving carnage behind - another 1997 is looming IMO, the similarities are clear if you look them up

3 hours ago, webfact said:

[Local] Savings cooperatives and local financial institutions will work together in seeking Bt63-billion debt repayment

Meanwhile, everything seems to be done to shut out foreign creditors and prevent them from filing their claims.

IMO, we're beginning to see the debacle of this governments plan to "rehab" Thai Airways.....

It will be nothing more than massing fund injections to prop it up...I would be very surprised if assets are not seized off shore if and when international travel restarts.

In the meantime, the trough will be filled and amazingly, evaporate.

Post Covid is going to be very changed, and Thai Airways will not be able to cope.

2 hours ago, Misterwhisper said:

Meanwhile, everything seems to be done to shut out foreign creditors and prevent them from filing their claims.

Bit of a problem for an airline that relies on international co-operation, one would have thought.

Trying to hide this internally within the country is their first big mistake.

They need an International Company to moderate, guide, appoint specialists in the aviation sector

if they really want their national flag carrier to survive & for overseas owed businesses to give them their support

Thais have already been in the trough for how many years of poor management with an

airline that is in a perfect location to flourish.

If they do not appoint the above there is no sympathy  left from me as they have no intention of

a real fix

20 hours ago, Misterwhisper said:

Meanwhile, everything seems to be done to shut out foreign creditors and prevent them from filing their claims.

If they do that to foreign investors just wait for the aircraft to start flying again, they will have to pick very carefully where they land.

Really no surprise. The Thai mentality is to siphon off as much as possible from every possible source into the hands of those who have paid to be in power. Screwing over foreigners is a national pastime despite laws that supposedly protect but in reality are interpreted wholly differently to how they are written and never a question maybe asked - contempt it called and as strong as defamation in application.

 

Totally twisted xenophobic country once you get beyond the ordinary local but even those have their mindset colored

now you know why the bank guarantee is lowered to 1 million baht ?

23 hours ago, Misterwhisper said:

Meanwhile, everything seems to be done to shut out foreign creditors and prevent them from filing their claims.

Where does it say that? this article is about local creditors uniting. Doesn't say anything about what foreign creditors are doing at the moment and doesn't say anything about actions to prevent them from doing something.

Edited June 9, 20206 yr by FritsSikkink