Thailand

The Central Bankruptcy Court decided yesterday that the airline can proceed with its plan to rehabilitate its debt, Thailand Business News reported. The plan is expected to be drawn up by early next year for approval by the court and Thai Airways’ creditors. It needs the endorsement of holders of at least 50% of the airline’s debt. The company, which had total liabilities of 332.2 billion baht at the end of June, faces one of the biggest challenges in its 60-year history as the Central Bankruptcy Court in Bangkok will investigate further in the airline’s accounts.

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Thai Airways International Pcl’s request to restructure its debt as part of bankruptcy proceedings was approved by a bankruptcy court on Monday, sending its share price sharply higher, Reuters reported. The decision by the court, which handles bankruptcy and restructuring requests in Thailand, allows the airline to move ahead with drawing up plans to restructure 245 billion baht ($7.83 billion) worth of debt. It comes as the coronavirus fallout has added to the woes of the airline, which has been struggling since 2012 and in which the government has a large stake.

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Thai Airways International Pcl, the nation’s flagship carrier, faces one of its biggest challenges in its 60-year history, with a local court set to rule on its debt restructuring on Monday, Bloomberg News reported. The Central Bankruptcy Court will decide whether the airline can proceed with its plan to rehabilitate its debt. The company, which had total liabilities of 332.2 billion baht ($10.6 billion) at the end of June, is one of the nation’s most high-profile debt cases.

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A selloff in the Thai baht, underperforming stocks and pressure on the bond market reflect growing concern from global investors over political instability and the growth outlook in Southeast Asia’s second-biggest economy, analysts and fund managers say, Reuters reported. Thailand suffered its deepest economic contraction in two decades last quarter and a long haul to recovery looms as the COVID-19 pandemic has hammered its mainstay tourism industry.

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Seven Thai airlines are seeking a combined 24 billion baht ($770 million) in low interest loans and other support measures, the government said on Friday, joining carriers across the world in requesting state help to weather the coronavirus crisis, Reuters reported. Airline executives made the request to Prime Minister Prayuth Chan-ocha, aiming to maintain liquidity and avoid layoffs, the government said in a statement. “The government will consider the requests from the airlines and find ways to support operations, including unlocking air travel, and boost domestic tourism,” Prayuth said.

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Thailand’s bankruptcy court on Tuesday said it will hand down its decision on Thai Airways International Pcl’s request for restructuring on Sept. 14, Reuters reported. The court held two additional hearings on Aug. 20 and Aug. 25 when minor creditors opposed the carrier’s restructuring request. “The court will allow those who oppose the plan to submit their petitions within seven days from today,” the court said in a statement. Thai Airways submitted its petition for bankruptcy protection in May and received a stay on its debt.

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The BOT (Bank of Thailand) has launched a new programme aimed at helping businesses severely hit by Covid-19 to expedite debt restructuring and facilitate their recovery amid the crisis. Launching the debt restructuring programme for businesses – known as ‘DR BIZ’ – the BOT said it wants to provide a mechanism to support coordination among multiple creditors and enable businesses to lessen their debt burdens, Regulation Asia reported.

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Thailand’s fiscal policy should play a greater role to help the economy recover from the impact of the coronavirous pandemic, the central bank governor said on Friday, with the benchmark interest rate at a record low, Reuters reported. The Bank of Thailand (BOT) will focus on assisting with debt restructuring, Veerathai Santiprabhob told reporters after the launch of a debt restructuring programme for businesses. “In such critical condition, the one who is capable of stimulating the economy is the government...

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Thailand’s bankruptcy court said on Monday it had scheduled two more days of hearings to consider Thai Airways International Pcl’s request for restructuring, Reuters reported. The Central Bankruptcy Court said in a statement 16 creditors opposed the airline’s restructuring proposals, of which three were institutional creditors and the rest, individual creditors. The court scheduled Aug. 20 and Aug. 25 for additional hearings for those opposing the plan. Thai Airways acting president, however, remained confident after the first hearing on Monday.

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Thai Airways International Pcl shares were suspended by the bourse on Friday after auditors declined to sign off on its financial statements for the six months to June 30, the International New York Times reported on a Reuters story. Auditor Deloitte Touche Tohmatsu Jaiyos Co Ltd said it could not reach a conclusion on the statements due to issues including a lack of liquidity and debt defaults which created "material uncertainty" and may affect the value of assets and liabilities.

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