Thai Airways’ administrators approve capital reduction

Thai Airways International administrators have approved a previously announced reduction in the carrier’s registered capital from THB27 billion baht (USD829.6 million) to THB21.8 billion (USD670 million), the airline said in a stock market disclosure.

The reduction was enacted through the writing off of over 516 million unissued and unsold shares and thus had no impact on the airline’s shareholding structure. It also does not impact the amount of cash actually available to the restructuring airline.

Reducing its registered capital to match its paid-up capital is the first step in Thai’s planned recapitalisation as outlined in its restructuring plan, approved in mid-June by the Central Bankruptcy Court in Bangkok. In the second phase, the Thai flag carrier will seek up to THB196.4 billion (USD6.05 billion) in fresh funding through the issue of new shares in a 50/50 ratio between the Ministry of Finance, Thai’s largest but minority shareholder, and new creditors.

The Central Bankruptcy Court must separately approve the decision to reduce Thai’s registered capital.