Addendum
THAI to be let off financial hook?
September 1st 2020
Thai Airways International (THAI) is a step closer to recovery following a series of hearings before Thailand’s Central Bankruptcy Court in the last month. Read More » The airline and its creditors presented the court with their submissions in three hearings in Bangkok. The debt-ridden carrier is seeking the court’s permission to launch a rehabilitation plan, a decision that will be announced on September 14. It is widely expected the rescue plan will be approved.
After the final hearing on August 25, THAI acting president, Chansin Treenuchagron, said procedures had been “executed smoothly and appeared to benefit” the airline’s rehabilitation plan.
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THAI had made the rehabilitation request - similar to Chapter 11 Bankruptcy in the U.S. that will protect it from creditors during its recovery attempt - to the Bankruptcy Court in May after it admitted it could not pay the US$2.7 billion it owed to banks and government stakeholders.
Chansin said if the court approves THAI’s rehabilitation plan on September 14, the company’s rehabilitation team will inform every creditor of the airline about the online process of filing their requests for repayment.
All creditors will be invited to a briefing of the rescue plan and be updated on the progress of the drafting, Chansin said.
The airline has named a planning group of “highly-experienced experts and professionals from various industries” which will oversee the rehabilitation if the plan is approved by the bankruptcy court. It includes former THAI president, Piyasvasti Amranand, widely regarded as one of the carrier’s most successful leaders.
THAI will not refund the cost of tickets to customers. “These customers are assured they will not have to spend too much time submitting formal requests to the Legal Execution Department [of the airline] for refund payments. The airline is allowing customers to keep unused tickets for use after its rehabilitation or with Thai Smile Airways, a wholly-owned subsidiary of THAI. They also can trade their tickets for travel vouchers valid until December 31, 2021,” Chansin said.
