Thai Airways restructuring plan approved by creditors

Thai Airways' debt restructuring plan of more than 300 billion baht has been approved by 90% of creditors.

It will be examined by the Central Bankruptcy Court on May 28.

In a previous report, the head of Thailand's finance ministry, the airline's largest shareholder, said he supported the plan.

Last year, Thai Airways filed for bankruptcy protection and debt restructuring as the airline posted a record loss of 141 billion baht.

Several people at the airline have been accused of mismanagement and corruption that led to these massive losses.

The national airline has been heavily criticized for its decision in 2004 to purchase 10 Airbus A340s for 100 billion baht.

The maintenance and fuel costs of these large aircraft were high and led Thai Airways to lose money on each flight.

To help the airline take off amid the Covid-19 pandemic, the national carrier plans to cut its workforce by half and sell real estate.

According to reports, the airline aims to raise 50 billion baht in new capital.

The airline also proposed a three-year freeze on loan payments and a six-year deferral of bond repayments.

Thai Airways restructuring plan approved by creditors – more at https://t.co/kJqjsuDYNF #Thailand
The restructuring plan to tackle Thai Airways International's more than 300 billion baht debt, one of Thailand's most high profile bankruptcy cases, was approved by the airline's… pic.twitter.com/PmoRRlcPNp

— The Thaiger (@ThaigerNews) May 19, 2021

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