Thai Airways International is considering another extension on the deadline to submit its restructuring plan, this time until the end of February or beginning of March.
On 5 January, the flag carrier said it had been granted a one-month extension to a previous deadline of 2 January to submit its rehabilitation plan, with the new deadline being 2 February. In a 26 January update on its restructuring, it says its rehabilitation planners are considering an additional one-month extension “according to the legal framework”.
On 13 January, the carrier’s president Chansin Treenuchagron said it was working “diligently” on the plan to ensure it would be submitted by its “specified timeframe”. Cirium has contacted Thai Airways for comment.
Thai’s planners are considering extending the deadline again after having discussions with creditors “from several classes”, the company says in its latest update. An extension would ensure the airline can “generate an optimal financial plan”.
Thai’s rehabilitation plan consists of a business plan and a financial plan. Initiatives under the former, which Thai says is “almost complete”, include granting voluntary unpaid leave and “making sacrifices for the organisation projects in order to decrease the company’s hiring expenses”. The financial plan includes debt and capital restructuring.
“After receiving the opinions from several classes of creditors, it appeared that Thai received good feedback in that most creditors were in favour of the principle of the rehabilitation plan. In addition, the creditors provided useful comments for the preparation of the rehabilitation plan,” it says.
Thai is now in the process of “thoroughly” checking all applications for debt repayment submitted by creditors.
“Meanwhile, a financial model must be established as a guideline to determine the pattern of capital and debt arrangements [that] need to be set up for the allocation of debt repayment to be presented for creditors’ consideration,” it adds.
Once the rehabilitation plan is complete, the official receiver will send a copy of the plan to creditors for their consideration and approval in a creditors’ meeting, a process that could take around one and a half months, Thai says. Once creditors have approved it, the Central Bankruptcy Court must give a final verdict.
“All of Thai’s staff and management team are pleased and determined to provide cooperation in order to support the preparation of the rehabilitation plan for success. Despite the challenges in operating the business, all of Thai’s staff heed this matter and are committed to continuously reduce expenses and increase the revenue of Thai,” the airline says.
“Moreover, Thai has received cooperation from all relevant and concerned persons, as well as creditors, partners, and customers who are vital for the success of the preparation of the rehabilitation plan,” it adds.
“The planner asserts that the rehabilitation plan would be well regarded and successful, as the creditors will receive the repayment of debt in fairness. Thai expects to resume full operations in the near future.”