THAI seeks court approval for its revised rehabilitation plan

[webfact]

Image Credit: thaiairways.com

 

Thai Airways International submitted a petition to the Central Bankruptcy Court on July 1st, seeking to revise its rehabilitation plan, after the flag carrier improved its performance, with an expectation that it may exit the plan on or before the 2025 deadline.

 

Government Spokesman Thanakorn Wangboonkongchana said that, yesterday (Tuesday), the cabinet acknowledged THAI’s progress report, prepared by the committee tasked with following up on the airline’s performance under the court-approved rehabilitation program.

 

THAI filed for bankruptcy protection, after reporting total debts of 245 billion baht, at the end of 2019. The cabinet gave the greenlight to the rehabilitation under the Bankruptcy Act in May 2020.  The Central Bankruptcy Court subsequently approved the plan.

 

Full story: https://www.thaipbsworld.com/thai-seeks-court-approval-for-its-revised-rehabilitation-plan/

 

-- © Copyright Thai PBS 2022-07-13

 

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[Srikcir]

According to THAI's Rehab plan submitted to the Official Receiver in March 2021, THAI's new vision is "A Private High-Quality Full-Service Carrier with a Strong Thai Brand...." (ref. March 1, 2021 wwwthaiairways.com)

 

If true, that means no more State bailouts and profit-motivated services (vs. free passage and/or services for government, military or political related parties). Good for the Thai taxpayer who has been carrying a majority of THAI's debts. As THAI's past revenues contribute 7% of Thailand's GDP, Thailand's economy can only improve.

 

 

[scorecard]

I doubt very much they can repay the massive 245Billion Baht debt so quickly. Also have they done a very detailed analysis of a forecasted Thai and global economic analysis for the next several years and factored both anticipated and some level of unanticipated world weather situations, war, possible global/regional economic downturns etc., various events which could affect their revenue, their operating costs and therefore their available cash flow funds and therefore their ability to clear the massive debt?

 

 

Edited July 13, 2022 by scorecard

[RichardColeman]

I get the feeling that the rehabilitation plan is based on Thai operating against no rivals driving the cost of seating down.

 

Expect this plan to completely fall apart when (IF) the competition start up in full again

[hotchilli]

18 hours ago, webfact said:

THAI filed for bankruptcy protection, after reporting total debts of 245 billion baht, at the end of 2019.

Jeez

[realfunster]

16 hours ago, Srikcir said:

As THAI's past revenues contribute 7% of Thailand's GDP, Thailand's economy can only improve.

Got any numbers to support that 7% GDP claim ?

I checked 2011 and 2019 THAI financials/Thai GDP and my data suggests around 1.6% and 1.1%….

[realfunster]

I’m looking forward to the independent public inquiry on this.

I am aware that will be a very,very long wait…

 

People might be thinking this is a relatively “harmless” corporate issue but many individuals, like myself, had some money in THAI via RMF/Provident Funds etc etc.

At that time it was (I assume) seen as relatively failsafe investment with the 51% government ownership. Obviously, that was then changed by the current administration..

I am still waiting for my monies to be returned, at present it has been written off in my RMF investment.

 

The whole saga is a great example of banana republic behaviour…meanwhile, the very same Government that walked away from THAI, are now trying to tempt people with a 40 million investment to buy a rai of Thai land.