Many small and medium-sized enterprises, the backbone of Thailand’s economy, are struggling with crushing debt loads that could force them out of business as the latest wave of Covid infections dims the prospects for an economic recovery, Bloomberg News reported. “This round is much worse than last year, and millions of operators are suffering,” said Sangchai Theerakulwanich, chairman of the Federation of Thai SME, who submitted a proposal last month for the government to boost support to smaller businesses.
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Thailand’s central bank held its benchmark rate unchanged on Wednesday, signaling a need to preserve policy space as the country grapples with its biggest wave of Covid cases and a weakening outlook for the tourism-reliant economy, Bloomberg News reported. The Bank of Thailand’s rate setting committee unanimously decided to hold rates at a record low of 0.5% for a ninth straight meeting, as expected by all 25 economists in a Bloomberg survey. The committee “stands ready to use limited policy space at the most-effective timing,” Bank of Thailand Assistant Governor Titanun Mallikamas said.
Thai Airways International Pcl on Wednesday said that its acting chief executive officer, Chansin Treenuchagron, had resigned, Reuters reported. The airline's chief of human resources, Suvadhana Sibunruang, will take over as acting CEO, the company said in a statement. The announcement comes after a court approved the airline's restructuring plan. Chansin will remain as an administrator of the airline's business rehabilitation plan. Read more.
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Thai Airways International Pcl won court approval on Tuesday to restructure a debt load of $12.9 billion as the airline, which is already in bankruptcy protection, seeks to turn around its fortunes, Reuters reported. The court ruling removes the last hurdle to implementation of the plan, seen as critical for the carrier which last year posted a record loss of about $4.5 billion. In its order, the Central Bankruptcy Court in Bangkok said it approved the rehabilitation plan. It did not make any changes to the plan that had been approved by creditors.
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A series of coronavirus outbreaks in Thai factories is raising concerns that the export sector could be hit hard, threatening to further undermine an economy as it struggles to recover from the pandemic's crippling blow to the crucial tourism industry, Reuters reported. The virus has swept through over 130 factories, including those supplying international brands, with more than 7,100 cases across 11 provinces, making manufacturing one of the top sources of infections along with prisons and construction camps.
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Indorama Ventures Ltd (IVL) has competed the acquisition of the recycled polyethylene terephthalic (R-PET) assets of CarbonLite Holdings and its subsidiaries in Dallas, Texas, the Thailand-listed producer said today, ICIS.com reported. IVL has completed all formalities with regards to the acquisition "and has taken charge of the plant effective from 11 June 2021", it said in a filing to the Stock Exchange of Thailand. IVL won a $63.8m bid for CarbonLite's Dallas rPET facility during a May 24 auction. CarbonLite in March this year filed for chapter 11 protection in the U.S.
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Thai Airways International Plc said that the Central Bankruptcy Court will decide on its restructuring proposal on June 15, after Friday's hearing was postponed to allow for the assessment of complaints filed by creditors against the plan, the Bangkok Post reported. "Creditors filed two complaints against the restructuring plan, which the court accepted," the airline said in a statement.
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Thailand’s King Maha Vajiralongkorn endorsed a $16 billion borrowing plan to shield Southeast Asia’s second-largest economy from the impact of a raging coronavirus outbreak that’s threatening a nascent recovery and plans to reopen borders to tourists, Bloomberg News reported. The government can borrow 500 billion baht ($16 billion) in the local or overseas markets to finance Covid relief measures for the public and businesses, according to a Royal Gazette announcement published Tuesday.
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Thai Airways International Pcl’s creditors approved the airline’s debt restructuring plan, paving the way for payment extension and unpaid interest waiver on at least 170 billion baht ($5.41 billion) of its debt, Bloomberg News reported. The plan was backed by 91% of creditors at an online meeting, Kitipong Urapeepatanapong, chairman of Baker & McKenzie in Bangkok, the airline’s legal adviser, said by phone on Wednesday.
Thailand plans to borrow an additional 700 billion baht ($22.3 billion) to fund measures to counter the worst Covid-19 outbreak to hit Southeast Asia’s second-largest economy, Bloomberg News reported. A meeting of the cabinet chaired by Prime Minister Prayuth Chan-Ocha on Tuesday approved the new borrowing plan from the finance ministry, the people said, declining to be identified before a public announcement.
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