Auditors refuse to sign off on Thai Airways’ report

Trading in Thai Airways International (TG, Bangkok Suvarnabhumi) shares on the Stock Exchange of Thailand (SET) was suspended between August 13 and 17, 2020, after auditors refused to sign off on the carrier’s accounts for the first and second quarters of 2020 due to its lack of liquidity. Deloitte Touche Tohmatsu Jaiyos said they could “not express a conclusion on the accompanying interim consolidated [report] of Thai due to uncertainty to the ability to continue as a going concern” for both periods. According to the financial report, Thai Airways’ liabilities exceeded assets by THB60.2 billion bahts (USD1.9 billion) at the end of the first quarter and by THB262.2 billion (USD8.4 billion) at the end of the second quarter. The carrier’s capital deficiency stood at THB12.5 billion (USD400 million) and THB18.2 billion (USD585 million), respectively. “[Thai Airways’] ability to continue as a going concern depends on several factors of business management, including the creditors’ approval of the rehabilitation plan as well as the successful implementation of the rehabilitation plan and the Company’s ability to continue to operate the business,” the auditors added. In a stock market filing, Thai Airways underlined that the inability of the auditors to sign off on its accounts was also due to a high level of uncertainty as to the future course of the COVID-19 pandemic and its impact on the airline industry. Following the auditors’ report, the SET issued a Suspend and Notice Pending warning on the carrier’s shares. On August 17, trading in Thai Airways’ shares was resumed, although with a Caution sign, which requires that all transactions in the company’s shares be paid in cash. Thai Airways lost THB28 billion (USD900 million) in the first half of 2020, over 400% more than for the same period in 2019.