Thai court extends Thai Airways bankruptcy hearings until Aug 25

 

FILE PHOTO: Empty lines are seen at Thai Airways counters in Suvarnabhumi Airport in Bangkok, Thailand April 30, 2020. REUTERS/Soe Zeya Tun

 

BANGKOK (Reuters) - Thailand's bankruptcy court said on Monday it had scheduled two more days of hearings to consider Thai Airways International Pcl's <THAI.BK> request for restructuring.

 

The Central Bankruptcy Court said in a statement 16 creditors opposed the airline's restructuring proposals, of which three were institutional creditors and the rest, individual creditors.

 

The court scheduled Aug. 20 and Aug. 25 for additional hearings for those opposing the plan.

 

Thai Airways acting president, however, remained confident after the first hearing on Monday.

 

"The hearings are promising and went smoothly," Chansin Treenuchagron said in a statement. The airline submitted its bankruptcy and restructuring petition in May, giving it a stay on debt repayment.

 

Minority creditors opposing the plan was not troubling because their objections were issues that Thai Airways could clarify, he said, without giving details.

 

The court will have to approve the airline's request for restructuring and a committee that would lay out the plan.

 

Thai Airways said on Monday it had nominated a committee of seven - including the company's chairman and acting president, former President Piyasvasti Amranand, veteran banker Boontuck Wungcharoen and EY Corporate Advisory Services Company Limited - to plan the company's restructuring.

 

Chansin said the airline had support from major creditors, including the Ministry of Finance, which together account for more than 50% of its debt.

 

The Thai government holds a 47.86% stake in the airline.

 

After the court approves its restructuring proposals, the airline said it will take one to two months to develop its plan before presenting it to creditors.

 

Thai Airways told shareholders last month it was confident the court would accept its request.

 

-- © Copyright Reuters 2020-08-17

 

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15 hours ago, snoop1130 said:

The Thai government holds a 47.86% stake in the airline.

in a - never made any profits ever - company

 

good investment of the people's tax money, as long as the elite can fly for free

15 hours ago, snoop1130 said:

Minority creditors opposing the plan was not troubling because their objections were issues that Thai Airways could clarify, he said, without giving details.

But we can all guess the wording !

I read elsewhere there were objections from overseas to EY Thailand’s appointment as advisors. Apparently they are requesting THB22m up front and then a THB15m a month retainer.
I agree those fees sound opportunistic !

 

2 hours ago, hotchilli said:

But we can all guess the wording !

As always with the Thais,  it will be a "misunderstanding". 

 

They need to face the reality that the foreign creditors will not play their typical Thai games. 

One can only hope that other countries now ask for all payments 6 months in advance for all landing spots to ensure that Thai upholds its financial responsibilities

1 minute ago, RichardColeman said:

One can only hope that other countries now ask for all payments 6 months in advance for all landing spots to ensure that Thai upholds its financial responsibilities

Would there not only be one country, namely Germany that has regular landing spots or are they actually flying to other destinations on money making routes?

The auditors did not sign off on the accounts last week.

 

Thai is capital deficient.

 

They will need to pony up billions to save it. 

3 hours ago, Fex Bluse said:

As always with the Thais,  it will be a "misunderstanding". 

 

They need to face the reality that the foreign creditors will not play their typical Thai games. 

 

2 hours ago, RichardColeman said:

One can only hope that other countries now ask for all payments 6 months in advance for all landing spots to ensure that Thai upholds its financial responsibilities

 

21 hours ago, snoop1130 said:

"The hearings are promising and went smoothly," Chansin Treenuchagron said in a statement. The airline submitted its bankruptcy and restructuring petition in May, giving it a stay on debt repayment.

They don't intend to pay off any debt, just expect foreign creditors to allow them to continue to fly without any restructuring, without any major changes and a guarantee aircraft will not be impounded.

Well until there is some resolution to this, they are effectively unable to fly outside Thailand.

 

The issue of aircraft being impounded is one thing, thats a strategic thing.

 

But the tactical problem will be fuel. Airports don't fuel aircraft, they have a third party fueler. Those guys just won't fuel an aircraft whose company is in bankruptcy without upfront payment.

 

TG, or their political masters, can spin it however they want. But in the real aviation world thats just how things work