THAI to file restructuring plan

Thai Airways International (THAI) will file its restructuring plan to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) on Monday, paving the way for its exit from business rehabilitation after four years
President Chai Eamsiri said the filing marks the airline’s first step in restructuring its organisation. An accompanying capital restructuring plan is intended to increase investors’ confidence after its exit from rehabilitation.
“The document to be submitted to SEC and SET is comprehensive with 2,000 pages covering THAI’s business plans and the procurement of aircraft,” he said on Saturday. “We are confident it will bolster investors’ confidence after its exit from the rehabilitation plan.”
He expressed confidence the capital restructuring plan will succeed as the company has been in talks with its creditors, most of whom have supported the rehabilitation plan.
Capital restructuring is one of four obligations the airline must fulfil to exit rehabilitation, including an obligation to increase capital, to maintain earnings before interest, taxes, depreciation and amortisation (Ebitda) of at least 20 billion baht, and to appoint a new committee in the event of a change in shareholders.
In November, creditors are expected to notify the airline of their intention to convert debt into equity. An offering of shares to pre-rehabilitation shareholders and employees, as well as a private placement, is expected in December.
THAI is expected to file a request to exit the rehabilitation plan with the Central Bankruptcy Court after February. Its shares are expected to resume trading in the second quarter of next year.
The SET suspended trading of THAI shares in May 2021, citing the risk of delisting because of negative equity and signs of non-compliance with the market’s minimum listing requirements. The company was given until 2025 to resolve the issues.
The company had earlier filed for bankruptcy protection and the court approved its rehabilitation plan on Oct 20, 2022. The company’s total liabilities stood at 200 billion baht as of Sept 30, 2020.
Under the rehabilitation plan, the company reduced employee numbers by half to about 10,000. It also cut back unviable and unprofitable routes and reduced its fleet from about 100 aircraft to 64 as of the end of 2022. It realised more revenue from sales of planes and other assets including its THAI Catering food division.
In the first half of 2024, THAI reported a net profit of 2.7 billion baht on revenue of 89.9 billion, which was an increase of 14% from the same period a year earlier.