Court Rejects Government's Bid to Control Thai Airways Recovery

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In a decisive hearing, the Central Bankruptcy Court has dismissed the Ministry of Finance's proposal to increase oversight on Thai Airways' rehabilitation plan, favouring the effective progress made by the current management team. The ministry had sought to appoint two additional administrators to the airline's recovery process, potentially increasing governmental influence. However, the court rejected this move, viewing it as unnecessary given the administrators' demonstrated success in steering the airline towards stability.

 

The court approved critical amendments to the rehabilitation strategy to solidify this trajectory. These include reducing the par value of shares to address past financial losses and speeding up debt repayments to appease creditors. This adjustment comes on the heels of a favourable vote from creditors in November 2023, reflecting widespread confidence in the existing approach.

 

 

Critics had labelled the ministry's proposal as an attempt to exert more control, but the court highlighted the sufficiency and competence of the current management team. The ruling signals strong judicial support for the existing rehabilitation framework and cautions against external interference.

 

As Thai Airways implements the new measures, which include an accelerated debt repayment schedule and share adjustments, the airline is expected to gain financial footing while assuring creditors of its commitment to recovery. The decision not only stabilises the airline's present standing but also reaffirms the importance of maintaining effective, uninterrupted management in achieving long-term financial health.

 

-- 2025-01-22