05 January 2021
Thai Airways International Public Company Limited (THAI) filed the business reorganization petition, and the Central Bankruptcy Court has issued an order to accept THAI's business reorganization petition for consideration on 27 May 2020; the Central Bankruptcy Court then granted THAI's business reorganization petition and appointed the planners as nominated by THAI on 14 September 2020. The Office of the Cabinet Secretary has since announced the order on the appointment of planners made by the official receiver in the Royal Thai Government Gazette on 2 October 2020 with a time limit of 3 months until 2 January 2021, within which the planners must submit a business reorganization plan to the official receiver.
Mr. Chansin Treenuchagron, Director and Acting President of Thai Airways International Public Company Limited, revealed that on 28 December 2020, the planners made a request to the Central Bankruptcy Court for an extension of the deadline fixed under the law to submit the business reorganization plan, with the extension period equivalent to one month from the previous deadline, due to THAI's business reorganization plan containing several important aspects requiring an all-inclusive analysis, consideration, and formulation of the debt structure, capital structure, and organizational structure. This is in addition to legal issues and contractual obligations with employees, business partners, and debtors, as well as conjunctions with financial estimates, capacity for debt repayment, and future business plans. All relevant parties, therefore, need to thoroughly consider and prepare THAI's business reorganization plan to deliver a just outcome for all creditors. Moreover, THAI has to discuss with creditors and all interested parties on various principles stipulated in the draft business reorganization plan in order to ensure that the business reorganization plan receives approval at the creditors' meeting. In this regard, the Central Bankruptcy Court has considered and issued an order approving the extension of the submission period of the rehabilitation plan to 2 February 2021.
Mr. Treenuchagron further revealed that following this, the official receiver would be holding a creditor's meeting to consider the business reorganization plan and that the Central Bankruptcy Court would issue an order on the approval of the plan and appointment of the plan administrators. THAI will proceed with the business reorganization plan and inform the creditors and all relevant parties on the progress of the business reorganization, including any other further developments.