17 August 2020
Today (17 August 2020) - The Central Bankruptcy Court has commenced the proceedings for business reorganization of Thai Airways International Public Company Limited (THAI). However, the Court requires two additional dates for the completion of the proceedings, 20 and 25 August 2020, whereby THAI’s witnesses shall be called in the presence of the Court.
Mr. Chansin Treenuchagron, THAI Acting President, revealed that the Central Bankruptcy Court has commenced the trial on two issues, namely, the approval of THAI’s business reorganization and the approval of the nominated planners, which consists of highly-experienced experts and professionals from various industries as follows:
1. ACM Chaiyapruk Didyasarin
2. Mr. Chakkrit Parapuntakul
3. Mr. Pirapan Salirathavibhaga
4. Mr. Boontuck Wungcharoen
5. Mr. Piyasvasti Amranand
6. Mr. Chansin Treenuchagron
7. EY Corporate Advisory Services Limited.
Mr. Treenuchagron added that the trial went smoothly today, showing positive signs. Only seven creditors represented by lawyers filed objections against THAI’s business reorganization; 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 reorganization as well as no objection against the nominated planners, accounting for more than 50 percent of the debts as per the second quarter of 2020 financial statements of THAI. Mr. Treenuchagron believes that THAI, in its best ability, has proven to the Court that business reorganization is justifiable, and that the nominated planners are appropriate. Nevertheless, the final judgement and all details are subject to discretion of the Central Bankruptcy Court.
Mr. Treenuchagron reiterated for the confidence of all creditors of THAI that 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 reorganization will proceed without delay and THAI will be prompted to work through to resolve its financial situation. On this occasion, he conveyed great appreciation toward THAI's creditors and customers for their support of the business reorganization and no objection against the nominated planners. He concluded that THAI will continue to ensure its preparedness to fulfill its commitments.
Once the proceedings related to business reorganization is completed and the Court issues an order for business reorganization as well as appoints the planners, and the appointment of planners is published in the Government Gazette, the Legal Execution Department will notify all the creditors regarding the process of registration for filing an application for repayment of debt. All creditors can electrically proceed with the filing by themselves at home or bring the documents to THAI Head Office at Vibhavadi Rangsit Road, so that THAI and the official receiver can assist and facilitate the creditors with the filing of the application for debt repayment by electronic means. THAI will provide the particulars of the date, time, and location in due course.
Mr. Treenuchagorn affirmed that THAI's policy is to facilitate and reserve the rights to refund for all refund customers to the best of its ability. The nominated planners have already discussed the inclusion of a specification of conditions or details relating to such matters in the business reorganization plan as this would eliminate the need for any time-consuming process and prevent customers from incurring any expenses from filing the claim with the official receiver.
For members of the Royal Orchid Plus (ROP) program, Mr. Treenuchagorn affirmed that even though ROP members are not deemed creditors of THAI who are entitled to file for debt repayment in accordance with the business reorganization plan, as the objective of the earned mileage is to exchange them for rewards, nevertheless, THAI continues to acknowledge the significance of ROP members and will see to the continuity of this rewards program for ROP members. THAI asks that all ROP members rest assured that their ROP membership benefits will remain and that members are not required to file for debt repayment or take any legal actions during the business reorganization.
Moreover, if the Court issues an order for business reorganization and appoints the nominated planners imminently, after which, within 1-2 months following the announcement of the planner appointment in the Government Gazette, THAI expects that it will be able to invite all classes of creditors to a preliminary information session on the draft business reorganization plan so that the creditors can be provided with information and updates on the progress of the execution of the business reorganization plan.