Thai court okays Nok Air restructuring plan

The Central Bankruptcy Court has approved Nok Air’s restructuring plan as adopted by the majority of its creditors in early August 2021, despite some objections from minor lenders.

“After considering the Rehabilitation Plan, its amendment, objections against the Plan and Planners’ clarification including the Official Receiver’s opinion on several issues, the Central Bankruptcy Court issued an order to approve the Plan which and its amendment which had been accepted during Creditors’ meeting on 4 August 2021,” the carrier said in a stock exchange filing.

Nok Air was also authorised to execute the plan under self-appointed administration with four administrators appointed namely: Wutthiphum Jurangkool (the airline’s Chief Executive); Tai Chong Yih (Deputy CEO); Prinya Waiwatana (Nok Air’s Board Member); and Chavalit Uttasart (an independent lawyer).

Creditor approval for Nok Air’s rehabilitation plan was a foregone affair given the airline’s main creditor is the Jurangkool family who are also its largest shareholders and therefore control its board and management. As such, given that the hold-out creditors’ share in Nok Air’s liabilities is comparatively small, the court found no reason to block proceedings.