Despite speculation, Thai Airways may not be required to apply for US bankruptcy protection to prevent the seizure of its aircraft and other assets.
A senior official confirmed the announcement after a meeting with the battling carrier’s senior management and the airline board headed by PM Wissanu Krea-ngam.
The meeting addressed the restructuring strategy of the airline following the Central Bankruptcy Court’s decision last month to recognize its insolvency petition. He says the airline is sending copies of its appeal for compensation to its creditors, travellers requesting refunds on their fares and members of the Royal Orchid Plus Flyer Programme.
In 2019 the overall debt of the group was 147.4 billion Baht, the largest chunk being 74.1 billion, owed to creditors, followed by $46.5 billion in the leasing of aircraft and EUR 11.9 billion in euro-denominated loans.
If creditors allow the rehabilitation process to take place through Thai courts, a spokesman explains that the company will not have to seek bankruptcy protection in the USA. According to its legal consultant, the airline has no assets in the US and does not schedule any flights there. There is also no danger that the aircraft will be confiscated by creditors.
However, the legal adviser says that in other countries, where he has assets and operates flights, he may have to file legal cases to protect his aircraft from creditors being confiscated. Thai Airways operate aircraft in two groups: the airline owned aircraft and the aircraft leased from other companies.
The owners of leased aircraft can exercise their rights to seize their aircraft unless they agree to the rehabilitation plan. Other creditors can not take aircraft until a complaint is filed and won.
“Our priority is to convince foreign creditors that they should accept the airline’s rehabilitation under Thailand’s Bankruptcy Court.”
SOURCE: Thailand NationStay updated with Samui Times by following us on Facebook.
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