krismiler
18th May 2020, 13:19
Looks like they're going for the equivalent of USA Chapter 11 protection and trying to get a restructuring plan through bankruptcy court. Whilst they are unlikely to go under, some significant changes could result.
https://asianaviation.com/report-thai-airways-to-file-bankruptcy/
Reuters is reporting that Thailand plans to go to bankruptcy court to submit a rehabilitation plan for its national carrier, Thai Airways International (https://asianaviation.com/?s=Thai+Airways), rather than go ahead with a previously planned rescue. “The State-Enterprise Planning Office agreed in principle for the rehabilitation of Thai Airways in court…the procedure will be submitted to Cabinet tomorrow,” government spokeswoman Narumon Pinyosinwat told Reuters. The procedure replaces a previous rescue plan, which involves the airline seeking a 58.1 billion baht (S$2.6 billion) loan guaranteed by the government. “It is similar to filing Chapter 11 in the United States,” she said, adding that details of the rehabilitation plan have not been discussed.Thai Airways, like every other carrier in the world, has suffered because of the COVID-19 (https://asianaviation.com/?s=COVID-19) pandemic and the virtual halt to air traffic.
https://asianaviation.com/report-thai-airways-to-file-bankruptcy/
Reuters is reporting that Thailand plans to go to bankruptcy court to submit a rehabilitation plan for its national carrier, Thai Airways International (https://asianaviation.com/?s=Thai+Airways), rather than go ahead with a previously planned rescue. “The State-Enterprise Planning Office agreed in principle for the rehabilitation of Thai Airways in court…the procedure will be submitted to Cabinet tomorrow,” government spokeswoman Narumon Pinyosinwat told Reuters. The procedure replaces a previous rescue plan, which involves the airline seeking a 58.1 billion baht (S$2.6 billion) loan guaranteed by the government. “It is similar to filing Chapter 11 in the United States,” she said, adding that details of the rehabilitation plan have not been discussed.Thai Airways, like every other carrier in the world, has suffered because of the COVID-19 (https://asianaviation.com/?s=COVID-19) pandemic and the virtual halt to air traffic.