Thai Airways Rushes To Protect Assets From Seizure

Thai Airways International (THAI) is planning to seek bankruptcy protection from the United States in an attempt to prevent such international countries from seizing its aircrafts.

THAI has already successfully negotiated with creditors in Switzerland, Germany and Japan and if other countries approve its petitions, its assets will be protected when flying into their jurisdictions.

Deputy Prime Minister Wissanu Krea-ngam, chairman of the rehab monitoring committee, said, “Seeking bankruptcy protection in the US will help protect THAI’s assets overseas. This process needs to be completed before August 17, when the court is scheduled to launch an investigation.”

The carrier filed for bankruptcy protection last month with the request scheduled to be reviewed by Thailand’s Central Bankruptcy Court on August 18. If approved, implementation of a restructuring plan agreed by five members of the Thai Airways board can go ahead.

Thai Airways added around 12 billion baht in debt last year, bringing its total unsettled debt to 244 billion baht. The airline has postponed its international schedules due to the government and Civil Aviation Authority not yet announcing the opening of its borders.

Now that THAI has lost its state enterprise benefits, it has called on the Transport Ministry for help as its employees are being refused treatment at four private hospitals who previously covered them under its national carrier status.

Additionally, THAI aircrafts have not been supplied with fuel since May 26 and the purchase of ingredients for aircraft meals has been suspended.

 

SOURCE: Chiangrai Times | Bangkok Post | Nation Thailand 

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