FILE PHOTO: A Thai Airways Boeing 777-300ER plane takes off from Bangkok's Suvarnabhumi Airport February 23, 2015. REUTERS/Chaiwat Subprasom

 

By Chayut Setboonsarng

 

BANGKOK (Reuters) -Thai Airways International Pcl won court approval on Tuesday for restructuring its $12.9 billion debt load as the airline that is already under bankruptcy protection seeks to turn around its fortunes.

 

The court ruling removes the last hurdle to the implementation of the plan, seen as critical for the carrier which last year posted a record loss of about $4.5 billion.

 

The Central Bankruptcy Court in Bangkok said in its order it approved the rehabilitation plan. The court did not make any changes to the plan that was previously approved by creditors.

 

A hearing was postponed after two complaints were filed against the plan by certain creditors.

 

"We are satisfied with the decision," Somboon Sangrungjang of law firm Kudun and Partners, which represents 87 saving cooperatives, told Reuters.

 

The plan covers the airline's debt of 400 billion baht ($12.86 billion), he said.

 

A committee of five, including the airline's acting chief executive Chansin Treenuchagron and its former CEO, Piyasvasti Amranand, will administer the plan.

 

Piyasvasti helmed the airline the last time it was profitable in 2009 to 2012.

 

The airline was in difficulty well before the coronavirus pandemic grounded many flights across the globe, booking losses nearly every year after 2012.

 

The restructuring plan, which relies heavily on debt extensions and debt-to-equity conversions, limits most of the haircuts to late interest payments.

 

The carrier said in March it plans reduce its fleet size to 86 jets by 2025 from the current 103. Thai Airways says it has cut 30 billion baht in expenses.

 

The Thai government holds a 47.86% stake in the carrier, but it is not governed by the country's state-enterprise law.

Thai Airways is due to hold a news conference later on Tuesday.

 

The airline this month resumed routes between European cities and the resort island of Phuket in Thailand in anticipation of a government scheme to allow vaccinated tourists to skip a mandatory quarantine.

 

($1 = 31.1000 baht)

 

(Reporting by Chayut Setboonsarng; Editing by Ed Davies and Muralikumar Anantharaman)

 

-- © Copyright Reuters 2021-06-15

 

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Does that mean that they will finally start to pick up their phone, and pay back all the clients who has not received their refunds for cancelled flights in 2020??..??..??..

 

 

 

"A committee of five, including the airline's acting chief executive Chansin Treenuchagron and its former CEO, Piyasvasti Amranand, will administer the plan."

 

Well let's hope it's former CEO administers the plan better than he could run the airline when he was in charge of it.

22 hours ago, rasmus5150 said:

Does that mean that they will finally start to pick up their phone, and pay back all the clients who has not received their refunds for cancelled flights in 2020??..??..??..

 

 

 

I got a full refund for our June 2019 tickets.

2 hours ago, webfact said:

A committee of five, including the airline's acting chief executive Chansin Treenuchagron and its former CEO, Piyasvasti Amranand, will administer the plan.

 

Piyasvasti helmed the airline the last time it was profitable in 2009 to 2012.

After which he was removed for clipping the wings of freeloaders, if I remember correctly...

3 hours ago, webfact said:

 

The airline this month resumed routes between European cities and the resort island of Phuket in Thailand in anticipation of a government scheme to allow vaccinated tourists to skip a mandatory quarantine

 

I doubt it .. said the Monkee weeing on the fire .. 

I would just be happy if they paid the 20 K  back that they owe my daughter,

it's quite a lot to her, but i think she knows it's never going to happen, steal

20 K from a 7/11 your going to jail , corporations steal, they get away with it.

regards worgeordie

9 hours ago, Excel said:

"A committee of five, including the airline's acting chief executive Chansin Treenuchagron and its former CEO, Piyasvasti Amranand, will administer the plan."

 

Well let's hope it's former CEO administers the plan better than he could run the airline when he was in charge of it.

To be fair, he was in charge the last time it was profitable. 

22 hours ago, rasmus5150 said:

Does that mean that they will finally start to pick up their phone, and pay back all the clients who has not received their refunds for cancelled flights in 2020??..??..??..

 

 

 

They are under bankrupcy protection so not much hope for you. Just boycot them in the future.

Thai Airways seeks new capital to resume operations after rehabilitation plan approval

 

File photo

 

Financially-strapped Thai Airways International (THAI) is seeking 50 billion Baht worth of capital from both the government and private financial institutions to boost its liquidity, so the struggling airline will be able to stay afloat and expand its operations, after the Central Bankruptcy Court approved its rehabilitation plan today (Tuesday).

 

THAI’s acting CEO Charnsilp Trinuchakorn told the media today that the national flag carrier will need 50 billion baht capital over the next three years to resume operations, after the airline cut costs substantially, by reducing its workforce by half and other expenses.

 

He said the airline hopes to free itself from the obligations of the rehabilitation plan in five years, although it has the option to extend the plan, one year at a time, for two years, adding that the airline is ready to sell off some of its property or to use its property as a collateral to guarantee loans.

 

Full story: https://www.thaipbsworld.com/thai-airways-seeks-new-capital-to-resume-operations-after-rehabilitation-plan-approval/

 

-- © Copyright Thai PBS 2021-06-16

 

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No mention of how the sale/auction of the THAI Airways B747, A380, A340 aircraft went? Did all those planes get sold and for how much? Or are they going to become coffee lounges? $4.5 Billion USD loss in 2020 makes up for 35%+ of the current total debt. At outset of bancruptcy it was slated at $10 Billion USD so numbers don't add up. How could they lose so much in 2020 if; no planes flying, little maintenance, fuel, lounges, airport fees etc.? Were they still paying crew, staff, managers and executives full pay? Now they ask for more money - another 50 Billion Baht ($1.6 Billion USD). A shame for Thai Airways. IMO lovely service but such a poorly managed "business". They made a big mistake not refunding paying customers for cancelled flights. Customer loyalty would be valuable to THAI in the future. Many will never fly them again because of that.

 

6 hours ago, Wiggy said:

To be fair, he was in charge the last time it was profitable. 

That's true but with losses in 2 of the 3 full years he was CEO the net result was an overall loss over the 3 years that he was in charge. In fact it was the splurge he instigated to buy new planes ( and don't forget the the Rolls Royce bribery claims during that era that have never been answered) that led to the dramatic losses in later years accompanied of course by general increases in the air fares they instigated. So by appointment of these lame ducks to oversee the post bankruptcy case it is just smoke and mirrors yet again to keep someone happy. 

22 hours ago, rasmus5150 said:

Does that mean that they will finally start to pick up their phone, and pay back all the clients who has not received their refunds for cancelled flights in 2020??..??..??..

 

 

 

I am keeping it charged and turned on!

400 billion bht !!! Oh dear

So their selling cakes and doughnuts in the street didn’t clear their billions of debt ? I’m shocked ????????????

2 hours ago, soi3eddie said:

No mention of how the sale/auction of the THAI Airways B747, A380, A340 aircraft went?

The A380s are leased so the only thing they can do with those is return them to the lessor which is often easier said than done. Some of the A340s are the -500 version and nobody wants those (one of them went to the Air Force for Royal duties (probably ‘donated’). To be honest, most of them are just scrap value now, and with the huge amount of aircraft in a similar position now that’s not much value at all. 

17 hours ago, webfact said:

Thai Airways International Pcl won court approval on Tuesday for restructuring its $12.9 billion debt load as the airline that is already under bankruptcy protection seeks to turn around its fortunes

In Thai currency that's a sack-full of money.

4 hours ago, webfact said:

Financially-strapped Thai Airways International (THAI) is seeking 50 billion Baht worth of capital from both the government and private financial institutions to boost its liquidity, so the struggling airline will be able to stay afloat and expand its operations, after the Central Bankruptcy Court approved its rehabilitation plan today (Tuesday)

Just let it go.... Jeez talk about throwing cash into a money-pit.

Who in their right mind, no in any sort of mind is going to invest 50 billion in an airline which is bankrupt, owes 400 billion, and is still being run by essentially the same bunch of clowns who have got it into that situation?

Court nod paves way for makeover of Thai Airways

 

"Makeover"

 

 

Great investment opportunity. Almost as good as bitcoin.

"He said the airline hopes to free itself from the obligations of the rehabilitation plan in five years, although it has the option to extend the plan, one year at a time, for two years ......."

Good luck, how could they crank up ⅓ of the debt or something like 4 billion? While I saw the ENTIRE fleet on the ground in Bangkok, U-Tapao and elsewhere, others were flying (reduced services, but they were flying). 

Thai Viet Jet closed 2020 with "a black zero", which I find a fantastic achievement. All the while TG staff was getting paid for doing ..... nothing. 

This airline went down the pan after 1992 and there is no viable avenue to put that carrier back into a black zero state as you cannot recover USD 12+ billion losses carried forward. 

Clear is, that the Ministry of Finance just poured almost countless millions of Baht - tax payers money - into that open pit. There is a minority of shareholding too who certainly did not throw in any good money after bad cash.

Question is, how can a carrier operate with minus equity? Answer is simple; ask Thai Airways! 

Can't let the cash cow go.  They were all expecting lifetime payments~the taxpayers will foot the bill no matter what~loose trillions, they won't mind

Follow those ministries (and the airforce)  that have been in charge for the last 20 years and then you know where the money went.

 

3 hours ago, herfiehandbag said:

Who in their right mind, no in any sort of mind is going to invest 50 billion in an airline which is bankrupt, owes 400 billion, and is still being run by essentially the same bunch of clowns who have got it into that situation?

The gumint?

No doubt Thai Airways owes a huge amount of money to airports and various companies at airports around the world. I can't see any airports allowing them to land until all debts have been cleared. Most people don't realise how much it costs to land a plane, reload and take off again. 

!@#$%^&*(

 

...better not to say anything....

 

 

Some troll posts have been removed.  Some posts using trolling images have been edited to remove the trolling images. 

5 hours ago, Wiggy said:

The A380s are leased so the only thing they can do with those is return them to the lessor which is often easier said than done. Some of the A340s are the -500 version and nobody wants those (one of them went to the Air Force for Royal duties (probably ‘donated’). To be honest, most of them are just scrap value now, and with the huge amount of aircraft in a similar position now that’s not much value at all. 

One has to wonder at the business acumen and brainpower of the "executives" who ordered the big aircraft back when, which lost money from day one and were never a viable commercial purchase in the first place.

 

These people should be singled out and their financial records scrutinised, just in case backhanders were offered for the purchase/leasing of these particular aircraft – – and we all know that is a distinct possibility here in Thailand.

1 minute ago, xylophone said:

One has to wonder at the business acumen and brainpower of the "executives" who ordered the big aircraft back when, which lost money from day one and were never a viable commercial purchase in the first place.

 

These people should be singled out and their financial records scrutinised, just in case backhanders were offered for the purchase/leasing of these particular aircraft – – and we all know that is a distinct possibility here in Thailand.

It’s a good point, and I’ve thought all along that the A380s were acquired purely for ‘face’ reasons. Even efficient airlines are struggling to make money with them. Even though the A380s weren’t purchased outright the A340-500s were, and that was a very dubious acquisition and certainly one worthy of scrutiny. 

I for one will never fly Thai airways again.