Latest news with #CentralBankruptcyCourt
New Straits Times
16 hours ago
- Business
- New Straits Times
Thai Airways gets court approval to exit bankruptcy plan
BANGKOK: A court has approved Thai Airways' exit from its debt rehabilitation plan, launched after the flag carrier struggled to survive the collapse in tourism caused by coronavirus pandemic travel restrictions. The Star Alliance member was plunged into crisis as global travel ground to a halt, triggering mass layoffs and forcing the airline to seek emergency government support. Thai Airways entered court-supervised restructuring in 2020 to resolve debts of 400 billion baht (US$12.3 billion), and said it has since "posted steady revenue since 2023." The Central Bankruptcy Court on Monday approved the airline's exit from the programme. "Thai Airways has successfully rehabilitated its business through organisational restructuring, flight expansion and fleet improvement," the airline said in a statement. The carrier plans to resume trading on the Stock Exchange of Thailand by early August after being delisted in 2021 over financial and shareholder issues. The finance ministry remains the airlines' largest shareholder, with a stake of nearly 40 percent. The Central Bankruptcy Court ordered Thai Airways to repay around 190 billion baht to creditors over the next decade, of which it has already paid back 94 billion baht. The airline had long been accused of mismanagement, and a 2020 transport ministry probe linked part of its financial woes to corruption. Thailand's tourism sector continues to lag behind pre-pandemic levels, with the government targeting 37 million visitors in 2025.
Straits Times
2 days ago
- Business
- Straits Times
Thai Airways exits debt restructuring plan with Court approval
BANGKOK – Thai Airways International won court approval to exit a debt restructuring program, paving the way for resumption of trading in its stocks after a four-year gap. The Central Bankruptcy Court in Bangkok on June 16 granted the national carrier's plea to emerge from the court-supervised debt rehabilitation. The airline successfully completed the restructuring as it managed to increase capital as specified under the plan, restructure business its without any delay, and generate profit before tax, the court said in a statement. The exit will now allow the company to carry out normal business operations five years after it fell into pandemic-triggered financial distress with more than 400 billion baht of debt. Trading of the company's shares may also resume in late July or early August following the court's decision, Thai Airways has said. 'It's now the duty of the new board to ensure sustainable growth of Thai Airways as the court-appointed debt rehabilitation team members have laid the groundwork for the company's business expansion,' Piyasvasti Amranand, court-appointed debt administrator, told reporters. The airline is currently benefiting from a post-pandemic travel boom, which has boosted its earnings and cash flow. Its improved financials have allowed it to order a new fleet of Boeing and Airbus jets to support its expanding operations. Thai Airways saw its net income jump fourfold in the first quarter of this year as the number of passengers it served rose more than 11 per cent from a year earlier. The airline sees strong bookings in the second quarter, led by rising demand for its flights to Europe, Australia and India, CEO Chai Eamsiri said in May. The airline appointed a new board of directors in April, including two senior officials from the Finance Ministry, to prepare for the debt program exit. The ministry's permanent secretary Lavaron Sangsnit is among the 11-member board. As part of the rescue plan, the carrier's creditors agreed to convert about 53 billion baht of debt into shares. It also sold about 23 billion baht in new shares to existing shareholders to boost its capital. Thai Airways' shareholder equity returned to a surplus after completing the debt-to-equity conversion and rights offering. It had a negative shareholder equity of about 27 billion baht after years of losses. 'We have a lot of financial strength in Thai Airways to continue our expansion and success in the competitive air travel industry,' Mr Chai said in a statement. 'Thai Air's main mission is to sustain its long-term growth and push for Thailand as the region's aviation hub.' BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
2 days ago
- Business
- Business Times
Thai Airways exits debt restructuring plan with court approval
[BANGKOK] Thai Airways International won court approval to exit a debt restructuring programme, paving the way for resumption of trading in its stocks after a four-year gap. The Central Bankruptcy Court in Bangkok on Monday (Jun 16) granted the national carrier's plea to emerge from the court-supervised debt rehabilitation. The airline successfully completed the restructuring as it managed to increase capital as specified under the plan, restructure business its without any delay, and generate profit before tax, the court said. The exit will now allow the company to carry out normal business operations five years after it fell into pandemic-triggered financial distress with more than 400 billion baht (S$16 billion) of debt. Trading of the company's shares may also resume in late July or early August following the court's decision, Thai Airways has said. 'It's now the duty of the new board to ensure sustainable growth of Thai Airways as the court-appointed debt rehabilitation team members have laid the groundwork for the company's business expansion,' Piyasvasti Amranand, court-appointed debt administrator, told reporters. The airline is currently benefiting from a post-pandemic travel boom, which has boosted its earnings and cash flow. Its improved financials have allowed it to order a new fleet of Boeing and Airbus jets to support its expanding operations. Thai Airways saw its net income jump four-fold in the first quarter of this year as the number of passengers it served rose more than 11 per cent from a year earlier. The airline sees strong bookings in the second quarter, led by rising demand for its flights to Europe, Australia and India, chief executive officer Chai Eamsiri said in May. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The airline appointed a new board of directors in April, including two senior officials from the Finance Ministry, to prepare for the debt programme exit. The ministry's permanent secretary Lavaron Sangsnit is among the 11-member board. As part of the rescue plan, the carrier's creditors agreed to convert about 53 billion baht of debt into shares. It also sold about 23 billion baht in new shares to existing shareholders to boost its capital. Thai Airways' shareholder equity returned to a surplus after completing the debt-to-equity conversion and rights offering. It had a negative shareholder equity of about 27 billion baht after years of losses. 'We have a lot of financial strength in Thai Airways to continue our expansion and success in the competitive air travel industry,' Chai said on Monday. 'Thai Air's main mission is to sustain its long-term growth and push for Thailand as the region's aviation hub.' BLOOMBERG
Bloomberg
2 days ago
- Business
- Bloomberg
Thai Airways Exits Debt Restructuring Plan With Court Approval
Thai Airways International Pcl won court approval to exit a debt restructuring program, paving the way for resumption of trading in its stocks after a four-year gap. The Central Bankruptcy Court in Bangkok on Monday granted the national carrier's plea to emerge from the court-supervised debt rehabilitation. The airline successfully completed the restructuring as it managed to increase capital as specified under the plan, restructure business its without any delay, and generate profit before tax, the court said in a statement.
