Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Court nod paves way for makeover of Thai Airways' $12.9 billion debt

Stock MarketsJun 15, 2021 02:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Thai Airways aircraft are parked on the tarmac at Bangkok's Suvarnabhumi International Airport March 27, 2015. REUTERS/Athit Perawongmetha/File Photo

By Chayut Setboonsarng

BANGKOK (Reuters) -Thai Airways International Pcl won court approval on Tuesday for restructuring its $12.9 billion debt load as the airline that is already under bankruptcy protection seeks to turn around its fortunes.

The court ruling removes the last hurdle to the implementation of the plan, seen as critical for the carrier which last year posted a record loss of about $4.5 billion.

The Central Bankruptcy Court in Bangkok said in its order it approved the rehabilitation plan. The court did not make any changes to the plan that was previously approved by creditors.

A hearing was postponed after two complaints were filed against the plan by certain creditors.

"We are satisfied with the decision," Somboon Sangrungjang of law firm Kudun and Partners, which represents 87 saving cooperatives, told Reuters.

The plan covers the airline's debt of 400 billion baht ($12.86 billion), he said.

A committee of five, including the airline's acting chief executive Chansin Treenuchagron and its former CEO, Piyasvasti Amranand, will administer the plan.

Piyasvasti helmed the airline the last time it was profitable in 2009 to 2012.

The airline was in difficulty well before the coronavirus pandemic grounded many flights across the globe, booking losses nearly every year after 2012.

The restructuring plan, which relies heavily on debt extensions and debt-to-equity conversions, limits most of the haircuts to late interest payments.

The carrier said in March it plans reduce its fleet size to 86 jets by 2025 from the current 103. Thai Airways says it has cut 30 billion baht in expenses.

The Thai government holds a 47.86% stake in the carrier, but it is not governed by the country's state-enterprise law.

Thai Airways is due to hold a news conference later on Tuesday.

The airline this month resumed routes between European cities and the resort island of Phuket in Thailand in anticipation of a government scheme to allow vaccinated tourists to skip a mandatory quarantine.

($1 = 31.1000 baht)

Court nod paves way for makeover of Thai Airways' $12.9 billion debt

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email