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Thai Airways debt rehabilitation request accepted by bankruptcy court


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Thai Airways debt rehabilitation request accepted by bankruptcy court

 

2020-05-27T041745Z_1_LYNXMPEG4Q086_RTROPTP_4_THAI-AIRWAYS-RESCUE.JPG

Thai Airways idle airplanes are seen parked on the tarmac of Suvarnabhumi Airport in Bangkok, Thailand May 25, 2020. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Flagship carrier Thai Airways International Pcl <THAI.BK>'s request for debt rehabilitation at the bankruptcy court has been accepted, the Court of Justice said on Wednesday.

 

The court's announcement gives the troubled airline an automatic stay on its debts.

 

The first day of hearings will be on August 17, the court said in a statement, adding that creditors may submit objections three days before the first hearing.

 

(Reporting by Panarat Thepgumpanat and Chayut Setboonsarng; Editing by Ed Davies)

 

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-- © Copyright Reuters 2020-05-27
 
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Pretty sure there will be quite a few claims not making an appearance in court as they were 'delayed' in court processing

 

 

3 hours ago, webfact said:

The first day of hearings will be on August 17, the court said in a statement, adding that creditors may submit objections three days before the first hearing.

 

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it looks like the main chunk of debt is 74bn in debentures.  i wonder who owns those.  one would assume the holders of that debt would be calling the shots.  not the lowly shareholders with a current market value of 10bn.

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12 minutes ago, natway09 said:

The court may just appoint "International Receivers" due the the amount of offshore debt which would open the door to some really good, overdue housekeeping.

Since it always seems to appear that the receivers do quite well financially out of these kind of proceedings what's the betting they will keep it "in house" as it were..........

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54 minutes ago, buick said:

it looks like the main chunk of debt is 74bn in debentures.  i wonder who owns those.  one would assume the holders of that debt would be calling the shots.  not the lowly shareholders with a current market value of 10bn.

What if the majority shareholder Thailand Ministry of Finance holds the "main chunk of debt?"

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43 minutes ago, condo62 said:

Any idea what this means for people holding tickets of cancelled flights or refund requests....?  

Don't know about refunds. But if you have a rescheduled flight, you should not have any problems. Just make sure you fly by the end of 2020.

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9 minutes ago, nuckyt77 said:

Another Thai soap opera. Never ever invest in Thailand or in a Thai company...that is the main lesson one can learn. I rent....i have a very old car and my money is and will stay oversea. Always go by this and you will be fine.

Thai baht has been the best performing currency in SEA. Your only other option is the USD.

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1 hour ago, condo62 said:

Any idea what this means for people holding tickets of cancelled flights or refund requests....?  

 

Bankruptcy does not equal belly up. They are still in business. There are many levels of bankruptcy. This level just pauses the debt so they can restructure the business in hopes of turning a profit again. 

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1 hour ago, buick said:

it looks like the main chunk of debt is 74bn in debentures.  i wonder who owns those.  one would assume the holders of that debt would be calling the shots.  not the lowly shareholders with a current market value of 10bn.

sadly, most of the debenture holders are small savings institutions of various kinds; eg company provident funds, small co-ops, pension type assets of various kinds. Mostly held by Thai is my understanding.

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Thai have already extended the tenure of paid tickets and hopefully will extend again. This will be one class of creditors and, with some conditions, this will not be a big cost to the new Thai Airways. Mileage program and member seniority will be another class and will require special attention as these travellers are their loyal repeat volume clients which they will need to ensure are treated fairly otherwise they will transfer to OneWorld.   

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Debt rehabilitation. 

That's a new way to describe financial manipulation...

Clears the way for the government to do many things especially after a partial share holding sell off to take it below the 51% majority holder level. 

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2 hours ago, condo62 said:

Any idea what this means for people holding tickets of cancelled flights or refund requests....?  

Well they are advertising international flights to Bangkok from July 1st. 

Albeit at $1000 dearer than the one way credit they hopefully are still holding for my March 27th flight they cancelled. 

Melbourne to Bangkok. 

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1 hour ago, wordchild said:

Selling the 3% was not about recouping any money for the Government, it was peanuts, as referenced above. The shares have little value (300 mil USD is the total share value of Thai Air)  the big issue is the debt which is a significant multiple of that.  The share sale was really a device that allowed the Thai Govt to extricate themselves from any (further) obligation to Thai Air as, subsequent to that sale, the company could no longer be classed as state owned. 

So, effectively, the Government was off the hook and could put pressure on other creditors to accept losses. That is the real story here.

I suspect,  that as more of this comes out, the Thai Government will be under considerable scrutiny for the way in which it has behaved. The whole thing is a mess, not the neat little package they are trying to spin! 

I mentioned previously that you had to look at the small print. 

Certain things had to happen to allow the government to minimize it's risks and exposure and allow the next course of action. 

May well eventuate that major airline debts are written off and someone has the ownership of an airline with minimal debts. 

No expert on Thai receivership laws, but watch this space...!!

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I read that 53 of their planes are leased including 30 from Airbus.

Among THAI Airways’ leased planes are six A380s, fifteen A350-900s, fifteen A330-300s, and twenty A320-200s. 
This would seem to indicate some Airbus planes are leased from leasing companies. The A-320’s belong to Thai Smile which has not really been mentioned.

Will be interesting to see how the leased planes are handled. Source : Simple Flying. 

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So, does this mean that the Thai bigwigs who demanded and received USD millions in bribes from Rolls Royce to use its engines will be squeezed for the return of the money they stole from Thai taxpayers?  Anybody know the current status of that typical lowlife greedy Thai crime?

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2 hours ago, hioctane said:

 

Bankruptcy does not equal belly up. They are still in business. There are many levels of bankruptcy. This level just pauses the debt so they can restructure the business in hopes of turning a profit again. 

I am not an expert but it makes sense to me that they will file bankruptcy to get the debt written off so they can wipe the slate clean with a new "China airways".

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2 hours ago, Thaidaddy said:

7. Internationals cannot be appointed as Planner but can advise the Planner

And that is the main point, as international creditors also can not claim any debts, which would be possible if bankruptcy was approved.

 

So this is just another example of, we the government will never pay our debts to international creditors

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