(Bangkok 17th) Thai Airways International (Thai Airways) has received court approval to exit its debt restructuring plan, paving the way for the resumption of stock trading that has been suspended for four years.
On Monday (June 16), the Bangkok Central Bankruptcy Court approved Thai Airways' application, allowing it to exit the court-supervised debt restructuring plan. The court said in a statement that Thai Airways had successfully completed restructuring by increasing its capital, restructuring its business, and achieving a pre-tax profit according to the plan.
Except for 2016, Thai Airways incurred losses every year from 2013 to 2022. In September 2020, Thai Airways received approval from the Central Bankruptcy Court to undergo debt restructuring. Thai Airways cut half its workforce and reduced its fleet size to shake off the downturn in less than five years. Since 2023, the company has achieved operational profitability every quarter.
In a statement, Thai Airways said it is indebted to creditors for 190 billion baht (approximately 24.77 billion ringgit) according to the court's mandate, of which 94 billion baht has currently been paid off, with the remaining amount to be repaid over the next 10 years.
Thai Airways stated in its statement: "Our goal is to enhance our potential for international shipping and promote Thailand as a hub for regional air travel."
Thai Airways is expected to resume trading on the stock market by late July or early August.
The court-appointed debt manager, retired economist Piyawadi, was a crucial driver in turning around Thai Airways' fortunes. He told reporters: "The debt restructuring team formulated by the court has laid the foundation for Thai Airways' business expansion, and now it should be handed over to the new board to ensure sustainable growth for Thai Airways."
The post-pandemic tourism boom has boosted Thai Airways' profitability and cash flow. With a more solid financial foundation, Thai Airways has ordered a new batch of Boeing and Airbus aircraft, significantly increasing the company's capacity.
On Monday (June 16), the Bangkok Central Bankruptcy Court approved Thai Airways' application, allowing it to exit the court-supervised debt restructuring plan. The court said in a statement that Thai Airways had successfully completed restructuring by increasing its capital, restructuring its business, and achieving a pre-tax profit according to the plan.
Except for 2016, Thai Airways incurred losses every year from 2013 to 2022. In September 2020, Thai Airways received approval from the Central Bankruptcy Court to undergo debt restructuring. Thai Airways cut half its workforce and reduced its fleet size to shake off the downturn in less than five years. Since 2023, the company has achieved operational profitability every quarter.
In a statement, Thai Airways said it is indebted to creditors for 190 billion baht (approximately 24.77 billion ringgit) according to the court's mandate, of which 94 billion baht has currently been paid off, with the remaining amount to be repaid over the next 10 years.
Thai Airways stated in its statement: "Our goal is to enhance our potential for international shipping and promote Thailand as a hub for regional air travel."
Thai Airways is expected to resume trading on the stock market by late July or early August.
The court-appointed debt manager, retired economist Piyawadi, was a crucial driver in turning around Thai Airways' fortunes. He told reporters: "The debt restructuring team formulated by the court has laid the foundation for Thai Airways' business expansion, and now it should be handed over to the new board to ensure sustainable growth for Thai Airways."
The post-pandemic tourism boom has boosted Thai Airways' profitability and cash flow. With a more solid financial foundation, Thai Airways has ordered a new batch of Boeing and Airbus aircraft, significantly increasing the company's capacity.