Thailand: Cabinet approves plan for THAI bankruptcy court restructuring

  • The cabinet approved a plan to bring Thai Airways International Plc to bankruptcy court for debt restructuring, the prime minister said on 19 May 20.
  • “It was a difficult decision,” Prime Minister Prayut Chan-o-cha told reporters at a news briefing. “The government has reviewed all dimensions … we have decided to petition for restructuring and not let Thai Airways go bankrupt. The airline will continue to operate,” Gen Prayut said.
  • The plan replaces a previous rescue package where the airline would seek a government-guaranteed loan. The airline will now get an automatic stay from debt collection by creditors who will be forced to participate in the national flag carrier’s debt-rehabilitation plan.
  • The Central Bankruptcy Court will organise the negotiations between the creditors and debtor and appoint a professional plan administrator with the consent of the two sides.
  • Government spokeswoman Narumon Pinyosinwat told reporters that the SEPC, which oversees policies for state-run enterprises, agreed that the airline should seek rehabilitation under the supervision of the Central Bankruptcy Court. “The prime minister has stressed the need to make the public understand that this is not about entering bankruptcy, but undergoing a process of rehabilitation,” Ms Narumon said.

External Link : https://www.bangkokpost.com/business/1920748/cabinet-approves-plan-for-thai-bankruptcy-court-restructuring

External Link : https://www.bangkokpost.com/thailand/general/1920264/thai-edges-to-bankruptcy-court

19-May-2020


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