Strong disagreement in long cabinet meeting to discuss THAI airways future, says Thai media

[hotchilli]

18 hours ago, holy cow cm said:

Thai is owned by : Finance Ministry (Government), Thai NVDR company Ltd 99.98% owned by the Stock Exchange Thailand, Government Savings bank,  Vayupak Fund 1 MFC started by the Government and major shareholder is Government Savings Bank, Vayupak Fund 1 Krungthai bank,  etc etc etc. So what do all of these major share holders have? Correct! And what do these shareholders all have in common, they are all intertwined in each others companies as investors. Look farther and there are dormant shell companies set up and of course that is the tip of the tough feed iceberg. All smoke and mirrors. Anyway, I like Thai Airways for domestic travel, so I hope it survives. How they can say itr is not a State owned enterprise is beyond me.

They think everyone is blind to their games.

[hotchilli]

20 hours ago, webfact said:

The beleaguered and former state enterprise is due to enter rehabilitation but there was reportedly strong disagreement in a two hour cabinet meeting yesterday.

Former state enterprise .... hmmmmm?

It must be so comforting then to now be a "private enterprise" with the full backing of the government willing to back your bankrupt business to the tune of 25 billion baht.

[Fex Bluse]

Very obvious and predictable strategy here. They were always simply stalling until tourism kicked in again and they should start making money again.

 

The entire thing is a charade, though their foreign creditors are the only serious parties. 

 

The Thai bankruptcy court could not care less and all these powerful Sino Thais will be conspiring to stall the proceedings until the pandemic is over and large numbers of tourists return.

 

They have no other strategy.

[Fex Bluse]

15 hours ago, Scott Tracy said:

One would think, unless Thai Airways has filed for bankruptcy protection everywhere, anywhere it flies, it will have lien on its assets in no time.

 

The best thing in the world would be if countries start seizing THAI airplanes. Massive and deserved loss of face.

[JonnyF]

There's no way they will let it die.

 

It's the perfect vehicle for transferring funds from taxpayers into the trough. It's an absolute goldmine for those involved. 

 

Expect various convoluted schemes to bail it out with public money while appearing not to bail it out with public money.

 

Personally I will never use them again, even in the extremely unlikely event that they start to offer competitively priced flights like they did a couple of decades ago.

[wordchild]

it does look like their cunning plan is unravelling. 

Trying to force losses onto international creditors (most of whom are secured) while trying to protect the  Thai debt holders , who mostly don't have any security, was never going to work. 

i guess that the Government has now realized this. As i see it , the choices are stark;

   1) Allow the company to be fully liquidated ; in which case the  (international) secured creditors will just grab what they can. However this will inflict severe pain on the unsecured Thai debt holders many of whom are provident funds and other kinds of employment savings funds, together with quasi Government entities. 

  2) Accept that , one way or another, the Government will have to step in and assume liabilities, such that operations can resume. 

My guess is it will be 2 but covered up with a heap of face saving guff.

[holy cow cm]

4 hours ago, hotchilli said:

They think everyone is blind to their games.

Yes the have all the nice cards in their hands while the people have jokers. They will not allow it to sink as the things underlying we cannot talk about. I for one want it to succeed as is my choice of airlines to fly domestically, and before CV-19 I flew a lot. To a big sense yes, the people are sort of blind for how intricate the feeding trough is set up.

[metisdead]

A post using a disallowed reference to the PM has been removed. 

[kingstonkid]

Simple and easy put it up for sale.

[ExpatOilWorker]

I got a full refund on my tickets, so they can set fire to all the planes if they like. 

[ALAN1503]

Yes ! They are fighting about who gets the platinum card 

[Stargeezr]

If the Thai government is actually planning to help Thai Air from being totally bankrupt, it could start by

getting some people who know how to make the airline profitable. No more hogs at the trough, no more free flights for the owners and

high management, as well as families of the pilots and airline staff. The whole world is suffering from COVID, not just Thailand so

this is a prime time to get the country airline out of debt. Of course this is the country Thailand and I do not see anything coming from the

present Junta and its members.

Geezer

[fondue zoo]

 

have no fear

 

[Mr Meeseeks]

Facts:

 

Total liabilities of at least $11 billion (USD) (other unconfirmed sources say as much as double that est. 550-600 billion baht)

Record loss of 141 billion baht last year

Share price down 45% since April 16 2021

The plan needs more than 50% of creditors to accept, which at the moment is unrealistic as most creditors will be facing financial difficulties themselves and will not be able to survive for the lengthy periods Thai Airways proposes not to pay its debts. 

 

It's a perfect storm and I am of the opinion it is unsalvageable. Massive loss of face for this administration and they will do anything to try and save it including bankrupt the country. Remember, they don't want their legacy or their proprietor's legacy to be that they let Thai Airways die.

 

Out with the old and in with the new. Change is inevitable, embrace it. 

[Brierley]

On 5/7/2021 at 2:18 PM, kingstonkid said:

Simple and easy put it up for sale.

For Sale: $11 billion of debt, plus a few old planes and a few rather aged air crews. Best offer.

[DirtyHarry55]

Once the public's forgotten about it they will bail it out tooo many Bigwigs got stakes in it to loose.

[metisdead]

A post with content that was copy and pasted from Bloomberg without a supporting link has been removed:

 

14) You will not post any copyrighted material except as fair use laws apply (as in the case of news articles). Please only post a link, the headline and the first three sentences.
 

[kingstonkid]

2 hours ago, Mr Meeseeks said:

Facts:

 

Total liabilities of at least $11 billion (USD) (other unconfirmed sources say as much as double that est. 550-600 billion baht)

Record loss of 141 billion baht last year

Share price down 45% since April 16 2021

The plan needs more than 50% of creditors to accept, which at the moment is unrealistic as most creditors will be facing financial difficulties themselves and will not be able to survive for the lengthy periods Thai Airways proposes not to pay its debts. 

 

It's a perfect storm and I am of the opinion it is unsalvageable. Massive loss of face for this administration and they will do anything to try and save it including bankrupt the country. Remember, they don't want their legacy or their proprietor's legacy to be that they let Thai Airways die.

 

Out with the old and in with the new. Change is inevitable, embrace it. 

I think if the right buyer came with the right deal that the creditors would rather deal that way then see the company go bankrupt and lose a lot of money.  Creditors would rather see dimes on the dollar than pennies.

 

The catch is that whoever takes it over has to do so without the government or government banks having more that 10% of the shares.

There are people that can do it but they have to want to do it.