The Central Bankruptcy Court of Thailand has approved Thai Airways International's application for bankruptcy protection and has granted the carrier a stay from creditors' claims until mid-August 2020, The Bangkok Post has reported.
The first hearing in the bankruptcy proceedings has been set for August 17. Until then, creditors can file objections to the process and even register their claims but they cannot pursue take action against the airline.
Thai Airways' debts are estimated at over THB200 billion bahts (USD6.3 billion).
Deputy Prime Minister Wissanu Krea-ngam indicated that once the proceedings begin, the court will probably need around three months to issue its verdict on the proposed restructuring. If it clears the process, Thai Airways would then need around three more months to finalise the programme and present it to creditors for approval. All things considered, a final restructuring plan is unlikely to be ready earlier than the first quarter of 2021 and even then, the restructuring process itself will take another five years.
As preparation for the upcoming court proceedings and restructuring, Thai Airways and the government have implemented a number of corporate changes. The Ministry of Finance has reduced its stake in Thai from 51.03% to 47.86%, selling the 3.17% stake to the quasi-state-owned Vayupak Fund 1. By reducing the share owned directly by the state to below 50%, the government has deprived the airline of its status as a state-owned enterprise.
In addition, the airline said in a stock exchange that four members of its Board of Directors have beene replaced. Among the changes are former president, Piyasvasti Amranand, returning to the board. Piyasvasti was the airline's head between 2009 and 2012. The new board also includes Pirapan Salirathavibhaga, an advisor to Prime Minister Prayuth Chan-o-cha.
