Thai Govt to Go to Bankruptcy Court With Thai Airways Rehab Plan

Thailand’s government said on Monday it plans to submit a rehabilitation plan for troubled national carrier Thai Airways International Pcl to a bankruptcy court rather than go ahead with a planned rescue, Reuters reported. “The State-Enterprise Planning Office agreed in principle for the rehabilitation of Thai Airways in court ... the procedure will be submitted to cabinet tomorrow,” government spokeswoman Narumon Pinyosinwat said. The procedure replaces a previous rescue, which involved the airline seeking a 58.1 billion baht ($1.81 billion) loan guaranteed by the government to ensure liquidity and help it through the outbreak of the new coronavirus. “It is similar to filing Chapter 11 in the United States,” she said, adding that the details of the rehabilitation plan and when it will be submitted will be discussed by the cabinet on Tuesday. By May, airlines around the world had grounded about 95% of their capacity as air travel all but came to a standstill due to the coronavirus pandemic. Read more

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