Airline creditors approve restructuring plan for Thai Airways

[Andrew Reeve]

 

 

The restructuring plan to tackle Thai Airways International’s more than 300 billion baht debt, one of Thailand’s most high profile bankruptcy cases, was approved by the airline’s creditors, its legal advisor told Reuters reporters.

The plan was approved by 90% of the creditors. It will be reviewed by the Central Bankruptcy Court on May 28. In a previous report, the head of Thailand’s Finance Ministry, the airline’s largest shareholder, said they support the plan.

 

credit to and the full story is on thethaiger.com/news

 

[Andrew Reeve]

Very strange as Thai Airways are yet put up an news announcement regarding the restructuring on their Thai Airways.com website.

[KaptainRob]

TG's biggest hurdle will be to raise capital through asset sales and an attempt to borrow many billions to support ongoing losses ... not the best business plan is it!!!

I fully understand creditors willingness to pass on a ~ 12% settlement and await a post covid return of viable airline traffic but I have my doubts as to how long TG can hang on.

An overweight management and board plus uncompetitive route pricing needs attention and online bookings could be vastly improved.   The days of selling 'package deals' are long gone so a typical 'Winter Special for 2' including return fares, hotel etc, will not put bums on seats.

In the past 12 years I often attempted long haul bookings as TG was the wife's preference, before shopping around to find better deals, sometimes in a better class - ie: premium economy, for less than TG's economy fare.

Good Luck with the rehab program and here's hoping TG doesn't fall off the wagon.

[Andrew Reeve]

Another airline in Thailand "Nok Air" has drawn up a rehabilitation plan for the airline’s creditors to discuss and approve the plan. This plan would also have to be approved by Thailand’s Central Bankruptcy Court.

I wonder what airline will be next!!

 

 

 

[NP42]

will a revived TG finally oust all the corrupt people at the top? If not, all this crap is just gonna happen again. They were already in the hole before Covid hit

[King Cotton]

'will a revived TG finally oust all the corrupt people at the top?'

In one fairly confident word . . . NO! corruption is both ingrained, as in a hard-to-break habit, and endemic, as in a disease that's impossible to cure. The C-word has become so much a part of the THAI furniture, I doubt that there'd be a single, appropriately qualified CEO replacement possessing the strength of mind to root that disease out.

A sad verdict, I know, especially with me being such an air-industry devotee.

[KaptainRob]

On 5/20/2021 at 5:28 PM, Andrew Reeve said:

Another airline in Thailand "Nok Air" has drawn up a rehabilitation plan for the airline’s creditors to discuss and approve the plan. This plan would also have to be approved by Thailand’s Central Bankruptcy Court.

I wonder what airline will be next!!

NOK is, or was, majority owned by Gov't. thru TG and KTBank although it's problems stem from NOK's own management decisions which peaked in 2016 and caused massive loss of confidence with customers along with an unreliable schedule.  AirAsia and ThaiVietJet capitalised on it's weaknesses and NOK's situation worsened.

 

[Andrew Reeve]

Good insight KaptainRob and thank you for the detail.