Court gives Thai Airways extra time to address creditors

Thai Central Bankruptcy Court has extended the deadline for Thai Airways International (TG, Bangkok Suvarnabhumi) to submit a restructuring proposal and has scheduled two additional hearings, on August 20 and 25, to allow the airline to address concerns raised by a number of minor creditors. The airline said in a stock market filing that while business reorganisation proceedings had been launched as planned on August 17, the two additional hearings would be required to ensure their completion even as the majority of creditors have already their intention to back the plan. “Only seven creditors, represented by lawyers, filed objections against Thai’s business reorganisation; however, there were no grave concerns raised since all objections could be clarified by Thai for correct understanding. Concurrently, various major creditors, including the Ministry of Finance, have submitted a letter expressing their support for Thai’s business reorganisation as well as no objection against the nominated planners, accounting for more than 50 percent of the debts,” the airline said in a statement. The Court said in its own statement that a total of 16 creditors had raised concerns about the reorganisation proposal, including three institutional creditors and thirteen individuals. Once the court formally approves the carrier’s restructuring plan, creditors will then be able to register their claims. Thai said it would need between one and two months to come up with a draft proposal, which it would then present to the creditors. “The sooner the Court issues the order on Thai’s business reorganization and the nominated planners, the more beneficial it will be for all creditors, since the business reorganisation will proceed without delay and Thai will be prompted to work through to resolve its financial situation,” Acting President Chansin Treenuchagron said.