THAI gets 4 new directors ahead of bankruptcy restructuring

[webfact]

THAI gets 4 new directors ahead of bankruptcy restructuring

By THE NATION

 

 

Debt-ridden Thai Airways International appointed four new directors, effective immediately, at its extraordinary board meeting today (May 25), according to its filing to the Stock Exchange of Thailand. Among them is former THAI president, Piyasvasti Amranand, who replaced Sirikul Laukaikul as a board member.

 

Another is former PTT chief executive officer Pailin Chuchottaworn, who replaced Pratana Mongkolkul.

 

The other two are Pirapan Salirathavibhaga, replacing Pitipan Tepartimargorn, and Boontuck Wuncharoen, replacing Pinit Puapan.

 

Separately, a THAI filing this morning confirmed that the Finance Ministry reduced its shareholding in the national carrier to below 50 per cent on May 22 by selling 3.17 per cent to Vayupak Fund 1. THAI thus lost its status as a state-run enterprise.

 

The government is moving to restructure the airline, which has debts of Bt200 billion, under formal bankruptcy protection.

 

Source: https://www.nationthailand.com/business/30388485

 

-- © Copyright The Nation Thailand 2020-05-26

 

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[Chelseafan]

Pirapan Salirathavibhaga - Former justice minister. Owns three flight simulators so he's got a lot of experince with aircraft.

 

 

[yellowboat]

3 hours ago, webfact said:

THAI thus lost its status as a state-run enterprise.

What comes with such status, arrogance, ineptitude, poor governance ?   

[khwaibah]

5 hours ago, webfact said:

THAI gets 4 new directors ahead of bankruptcy restructuring

[Blumpie]

Someone play taps.

[herfiehandbag]

4 hours ago, Chelseafan said:

Pirapan Salirathavibhaga - Former justice minister. Owns three flight simulators so he's got a lot of experince with aircraft.

 

 

So no conflict of business interests there then!

 

I wonder how long he (as the owner of three flight simulators) has been angling to get onto the board?

Edited May 26, 2020 by herfiehandbag

[petermik]

More pigs feeding from the trough.........

[Grumpy one]

Why not employ 6 year old kids as directors, besides being cheaper they might even do some good

[hotchilli]

5 hours ago, webfact said:

The government is moving to restructure the airline, which has debts of Bt200 billion, under formal bankruptcy protection.

The government should sell any and all holdings within Thai airlines and let it run without the influence that killed it to start with !

[BobbyL]

Seems once again like 'jobs for the boys'.

 

A former minister, a former THAI president and a former PPT CEO (who are partly owned by the Ministry of Energy).

 

What a complete farce.  

 

 

 

[Henryford]

They (and their families)  must be looking forward to their free first class flights around the world.

[Canuck1966]

I'd prefer to invest in a pork farm in Pakistan

[Bender Rodriguez]

4 big fat cats that will get a golden parachute for as good as no work done

[Srikcir]

- the government is moving to restructuring the airlines

- new directors appointed

Two points that raises concern/confusion(?):

1. Bankruptcy Procedures can only be started by a creditor against a debtor. Yet in the subject case it appears it is being initiated unilaterally by the majority shareholder the Thai government acting as a debtor.

 

2. The proceedings for business reorganization are governed by Chapter 3/1 of the 1998 amendment of Thailand's Bankruptcy law that became Establishment of Bankruptcy Court and Procedure for Bankruptcy Cases Act of 1999. The Central Bankruptcy Court began operations in 1999. Yet, it is the government acting unilaterally to reorganize the company and its capital structure without involvement or approval of the creditors and the Court.

 

The only way to reconcile these contradictory government actions is that they are NOT being done in accordance with the bankruptcy laws should Thai had filed for bankruptcy.

As there has been no affirmative statement by the government that THAI is now under LEGAL bankruptcy, tgere is no assignment to a bankruptcy court jurisdiction and the government continues to independently control the company's capital and organizational structures, it follows then that THAI is not legally in bankruptcy (similar to U.S. Chapter 11 ). 

This apparent anomaly also brings into question as to the silence of the creditors that THAI appears not to be in legal bankruptcy while the majority shareholder Thailand seems to bypass the bankruptcy law. 

 

[new2here]

I'm not so against the appointment of the former PTT Pcl CEO.. In part because businesses like PTT and TG share a fair bit of similarities in terms of size, scope transnational operations, etc... so, on the surface of it, I can't say that someone with the credentials of having run PTT (and to be fair, PTT does appear to operate fairly well from a performance basis alone) would overtly be a bad choice... but.. having come from PTT does not alone mean he will be a success.. but I do think that someone who did have that type of background would be more probable to success than not. 

 

Others I think may be more debatable..   What I think they really need is a true "operations" guy/gal.. either at the COO or at minimum SVP/EVP level... someone who has come up from the ranks with a carrier or carriers or has at least some true operational experience with carriers of Thais size and network organization.

 

 

[Gudge]

I am a retired AC employee and it was in basically the same position as Thai with the government running it. Management and top positions filled and overflowing with useless political appointments and top executive family appointments losing money until on the verge of bankrupting. They went private and brought in a top American Airline executive as CEO and he rid the airline of close to 3/4 of the top useless management, restructured the airline and brought it back to a good profitable airline. I know Thai government will never do that because thinking they will lose face but it is the only way.  

[trainman34014]

Akin to moving the Deckchairs around on the Titanic; nothing will change and this useless and overmanned Monster will die anyway !

[Chelseafan]

20 hours ago, Grumpy one said:

Why not employ 6 year old kids as directors, besides being cheaper they might even do some good

 

Defintely...monkeys and typewriters an' all that....

 

[Chelseafan]

19 hours ago, new2here said:

I'm not so against the appointment of the former PTT Pcl CEO.. In part because businesses like PTT and TG share a fair bit of similarities in terms of size, scope transnational operations, etc... so, on the surface of it, I can't say that someone with the credentials of having run PTT (and to be fair, PTT does appear to operate fairly well from a performance basis alone) would overtly be a bad choice... but.. having come from PTT does not alone mean he will be a success.. but I do think that someone who did have that type of background would be more probable to success than not. 

 

Others I think may be more debatable..   What I think they really need is a true "operations" guy/gal.. either at the COO or at minimum SVP/EVP level... someone who has come up from the ranks with a carrier or carriers or has at least some true operational experience with carriers of Thais size and network organization.

 

 

 

This could be the guy