The Central Bankruptcy Court has declined the Finance Ministry’s proposal to appoint two additional rehabilitation planners for Thai Airways International, ruling that the current team of three planners is fully capable of addressing the airline’s debt restructuring without any instances of default. The decision, announced today, emphasized the sufficiency of the existing structure in navigating the ongoing rehabilitation process.
The court pointed out that expanding the number of planners would lead to unnecessary expenses, estimating an annual cost of five million baht per additional planner. This financial consideration, coupled with the planners’ demonstrated ability to manage the airline’s recovery, formed the basis for the rejection.
The proposal, supported by a majority of the airline’s creditors, was initially made to replace two planners who resigned in March 2024 and to handle the workload as Thai Airways nears the conclusion of its rehabilitation process. The suggested candidates were Panya Chupanich, a director at the Transport Ministry, and Polchak Nimwatana, a deputy director at the State Enterprise Policy Committee within the Finance Ministry.
In a related decision, the court also dismissed the creditors’ approval of a debt-to-equity swap intended to eliminate Thai Airways’ accumulated debt of 60 billion baht. The plan included reducing the par value of the airline’s shares to 2.5452 baht and issuing new shares at this adjusted value.
Thai Airways CEO, Chai Iamsiri, responded to the ruling, stating that the court’s decision would be discussed in an upcoming planners’ meeting this Thursday. He noted that the court had affirmed the authority of the existing planners to take necessary steps, including paying dividends to shareholders and reducing the par value of shares to address the debt burden.
Despite the court’s rejection of key proposals, Chai expressed confidence that Thai Airways will successfully exit its rehabilitation program in the latter half of the year, paving the way for the resumption of the airline’s trading on the stock market.
The meeting was attended by representatives from key creditor groups and officials involved in the rehabilitation process, highlighting the significance of the court’s decisions in shaping the airline’s recovery strategy.
