Thailand’s Bankruptcy Court accepted, on Thursday, Nok Air’s request for arbitration and have frozen all debt repayments for the troubled low-cost carrier.
The coronavirus pandemic has hit the airline industry in Thailand hard with Nok Air now the second carrier to appear before the Bankruptcy Court after national flag carrier Thai Airways.
According to local media reports, Nok Air currently owes its debtors around 26 billion baht which is now given an automatic stay.
The company has already folded its long-haul unit Nok Scoot and will be looking to save its domestic business in its dealings with the Bankruptcy Court.
The court said that it will rule on the airlines’ proposed revival plans on 27 October.