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With no more flights to the US, THAI may not need to seek protection under Chapter 11

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With no more flights to the US, THAI may not need to seek protection under Chapter 11

By The Nation

 

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Thai Airways International (THAI) may not need to seek protection under Chapter 11 of the Bankruptcy Code in the United States, a senior official said after a meeting led by Deputy PM Wissanu Krea-ngam on Monday (June 1) with senior THAI officials and the airline’s board.

 

The meeting was held to discuss the airline’s rehab plan after the Central Bankruptcy Court accepted its bankruptcy protection case on May 27. 

 

Prapas Kong-led, director general of the State Enterprise Policy Office, said the airline will send copies of the rehabilitation petition to its creditors, passengers who seek refunds on their tickets and members of the Royal Orchid Plus frequent flyer programme. 

 

As of last year, THAI’s total debts were worth Bt147.4 billion, with the largest chunk or Bt74.1 billion owed to investors holding its debentures, followed by Bt46.5 billion owed for the leasing of planes and euro-denominated loans worth about Bt11.9 billion. 

 

If creditors allow the rehab process to go via Thai courts, then THAI will not need to seek bankruptcy protection in the US, he said. 

 

According to its legal adviser, THAI may not need to file bankruptcy in the US as it does not have any assets in the United States and it is not scheduling any flights to the US either. Hence, there is no risk of its airplanes being seized by creditors there. 

 

However, the legal advisers said, the airline may need to file legal cases in other countries where it has assets and operates flights, so it can protect its planes from being confiscated by creditors.

 

Airplanes operated by THAI are divided into two groups – those owned by the airline, and those leased from other companies. 

 

The creditors of the leased planes may exercise their right to seize the aircraft if they do not agree with the rehab plan. Other creditors, however, cannot take the planes unless they file and win a lawsuit.

 

“Our priority is to convince foreign creditors that they should accept the airline’s rehabilitation under Thailand’s Bankruptcy Court,” Prapas added.

 

Source: https://www.nationthailand.com/business/30388897

 

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-- © Copyright The Nation Thailand 2020-06-02
 
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3 hours ago, rkidlad said:

Why on earth would any foreign creditors look at any of this and think, "oh, yea. I should have faith in these people". Your reputation precedes you in the outside world. 

..because if they push for bankruptcy they will definitely lose everything.. if they allow Thai to keep trading there is a possibility that they may get some or all money back.. in time.. what would you choose?    

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A post has been removed, please be very careful what you post....

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2 minutes ago, Laza 45 said:

..because if they push for bankruptcy they will definitely lose everything.. if they allow Thai to keep trading there is a possibility that they may get some or all money back.. in time.. what would you choose?    

Well, if wishful thinking means there’s a possibility I could get all that I’m owed back, I choose wishful thinking. 
 

Will my odds increase if I ignore reality and cross my fingers? 

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So basically they aren't flying to the US so they can't seize their planes. Smart choice. Not the moral one. But smart none the less.

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This also seems to indicate they aren't going to fly to the U.S. in the future, too. 

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4 hours ago, webfact said:

As of last year, THAI’s total debts were worth Bt147.4 billion, with the largest chunk or Bt74.1 billion owed to investors holding its debentures, followed by Bt46.5 billion owed for the leasing of planes and euro-denominated loans worth about Bt11.9 billion. 

now that is good management

 

they only need to ask for more BILLIONS tax payer each year

 

and the elite & their families could fly for free all over the world

 

and maybe stay for free in THAI owned properties 

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49 minutes ago, smedly said:

so they can't seize them in Thailand or demand the return of leased planes 

 

sounds like Thailand is doing its best to get out of paying what they owe and not returning what doesn't belong to them

 

what a mess

 

how about a lawsuit against the directors and those responsible for creating the mess in the first place and also CV-19 did not create this debacle, Thai was going down the tubes for a long time 

You act like its a Thai thing.. its how all companies work when they get bankrupt and file for it. They try to negotiate a settlement with the creditors. This is the norm. i guess you have no idea how it works with large businesses and bankruptcy. 

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Judging from the numbers of Thai flagged aircraft parked at Suwanabhumi they flew all their assets back here before filing for bankruptcy.

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1 hour ago, Thaidaddy said:

Thai do not fly into the US because they are banned, and have been for a couple of years because they cant meet US safety regulations. The fact that government officials even thought they needed to file under Chapter 11 shows how poor there understanding of the Thai rehab laws are. The reality is that any (leased) Thai plane landing anywhere in the world can be impounded as they dont have to follow Thai law.  Lease creditors therefore have a strong bargaining position in the Plan which means other (unsecured) creditors will suffer. If that means the credit union members then the government is going to have major problems at the next election. 

They failed safety audits a few years ago but to even participate in codes shares/ Star Alliance

they had to get their act together. The reason TG does not fly top the US anymore is they can't 

can't money on it, and the fleet. Thai-US is a mostly leisure market that is saturated.

The US carriers stopped BKK flights also.

On the other hand until covid-19 there were several nonstop flights per day from tiny Singapore to the US well 

subscribed by business class passengers paying very high fares 

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