THAI says its capital needs may be half its earlier projections as biz recover, court sets hearing date on Sept 27

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Thailand’s embattled national carrier – Thai Airways International Plc (THAI) revealed that it may need lower than expected new capital needs as the situation of the airline starts to improve with the Central Bankruptcy Court now scheduling its hearing for its reworked rehabilitation structure next week.

THAI said that the improvement in the overall operations and revival of the airline industry’s fortunes have prompted the airline to rework its recapitalization needs and therefore it may need half the amount of new equity injection than the previously projected 50 billion Baht.

THAI, which pre-covid outbreak, had more than 100 aircrafts of different configurations, has been battling bankruptcy proceedings and its 1st bankruptcy proceedings were approved with plans for a cost cutting, resizing of aircraft fleet, capital injection and a debt-for-equity swap.

The new filing which includes amendments states that THAI has accumulated cash flow of more than 10 billion Baht, and this has caused it plan administrators to assess that the new capital needed to manage the business during the rehabilitation period would not be as high as 50 billion Baht that was projected earlier.

The new funding need may be as low as 25 billion Baht, causing Thai Airways to submit a new plan to the Central Bankruptcy Court.

THAI said that although there may be some creditors who may oppose the proposal to amend the business rehabilitation plans, the court has set September 27th as the date for the hearing, a postponement from the hearing that was supposed to take place today.

The rehabilitation plan is being managed by former President and also former Energy Minister – Piyasavasti Amranand, Pornchai Thiravej, Kraisorn Baramee-Huaychai, Siri Jirapongphan and Chansin Treenuchagron.

And on July 1, 2022, the Plan Administrator submitted a request to amend the business rehabilitation plan to the officer of Debtor Rehabilitation Division, Legal Execution Department. And on September 1, 2022, the officer has already held a meeting of the Company’s creditors.

The meeting of creditors passed a resolution under Section 90/46 of the Bankruptcy Act B.E. 2483 and its amendments. 78.59% of the total debt of all creditors who attended the meeting and voted to accept the proposal to amend the rehabilitation plan as submitted by the plan administrator to the officer. However, some creditors have exercised their legal rights to submit a petition opposing the proposal to amend the business rehabilitation plan. Therefore, the Central Bankruptcy Court has scheduled a hearing.

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