Thai Airways Files Restructuring Plan: Eyes 2025 Relisting

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Thai Airways International (THAI) will submit its restructuring plan to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) on Monday. This move is crucial for the airline's exit from business rehabilitation, a process it has been navigating for the past four years.

 

Chai Eamsiri, the airline's President, described the submission as the first step in revamping the organisation. The 2,000-page document encompasses business plans and aircraft procurement, aimed at restoring investor confidence post-rehabilitation.

 

"We are confident it will bolster investors' confidence," Eamsiri said on Saturday. Most creditors have already shown support for the rehabilitation plan. The airline's restructuring strategy focuses on increasing investor confidence through an extensive capital restructuring, maintaining a strong cash flow, and potentially appointing a new committee if there is a change in shareholders.

 

The plan includes converting debt into equity, offering shares to pre-rehabilitation shareholders, employees, and through private placements, expected in December. Following these steps, a formal request to exit the rehabilitation plan will be filed with the Central Bankruptcy Court after February. The airline aims to resume trading its shares by the second quarter of next year.

Trading in THAI shares was suspended in May 2021 due to negative equity and compliance issues. The company was given until 2025 to address these challenges. Thai Airways had previously filed for bankruptcy protection, with a court-approved rehabilitation plan in place since October 2022. Total liabilities stood at 200 billion baht as of September 2020.

 

As a part of its rehabilitation strategy, the airline has halved its workforce to around 10,000 and reduced its fleet from roughly 100 aircraft to 64. The company also capitalised on sales of aircraft and other assets, including its THAI Catering food division, reported Bangkok Post.

 

Financial performance has shown improvement. In the first half of 2024, THAI reported a net profit of 2.7 billion baht, with revenue hitting 89.9 billion baht, a 14% increase compared to the previous year.

 

Thai Airways remains optimistic that its meticulous planning and restructuring will help it exit from rehabilitation and mark a robust return to financial health.

 

TOP: File photo by Laurent ERRERA from L'Union, France

 

-- 2024-09-30