The Central Bankruptcy Court in Bangkok has accepted Thai Airways’ bankruptcy petition, according to reports in the media. The whole process of its debt rehabilitation is expected to take up to five years.
Thai Airways became the first airline in the Southeast Asia region to file for bankruptcy after the coronavirus pandemic hit the aviation sector worldwide.
Earlier this month, media houses reported that the Thai government has decided to restructure the troubled carrier as per the bankruptcy act. The carrier has accumulated a debt moratorium of ฿200 billion over the years.
Since 2012, Thai Airways has posted losses every year after 2012, except in 2016. Last year, it losses of ฿12.04 billion.
Recently, the carrier appointed five people to jointly hold the position of plan preparer during its business rehabilitation process.
Thai Airways chairman Chaiyapruk Didyasarin and acting president Chakkrit Parapuntakul have been appointed, along with three newly appointed board members: former president Piyasvasti Amranand, as well as Boontuck Wungcharoen and Pirapan Salirathavibhaga. EY Corporate Advisory Services will also be involved in the process.
In a stock exchange filing, the carrier said, “The five men and EY will have the authority and duty in managing the business and assets of the company. This rehabilitation process will enable the company to reach its rehabilitation plan’s objectives even more effectively step by step as supported by the laws, which provides equitable protection to relevant parties.”
“Moreover, during the process of rehabilitation, the company will still be able to conduct its normal business operations, whether it be providing passenger transportation service to global destinations or postal transportation service, of which will be carried out concurrently with the rehabilitation of the company, in order to improve the operational efficiency and further improve the quality of products and services.”