The Cabinet gave the green light for THAI to undergo rehabilitation under the Bankruptcy Act in May 2020, while the airline’s protection filing was granted by a court in June last year.
The Finance Ministry and state enterprises will still have 40 per cent shareholding in the company under the revised plan.
Details of the revised rehabilitation plan are as follows:
1. Procuring loans and/or bonds with a period of no more than six years, totalling no more than 12.50 billion baht. THAI has also prepared a revolving credit facility for the same amount as a backup plan.
2. Increasing registered capital to approximately 31.50 billion shares to boost THAI's financial structure and enable its shares to be traded on the Stock Exchange of Thailand (SET) again:
The revision of THAI's rehabilitation plan is expected to be completed within 2024. If the plan succeeds, THAI's equity will be on positive trajectory in 2024, while the company's shares could be traded on the SET in 2025.
"This move aims to boost confidence among creditors in line with aviation business recovery and boost THAI's growth in revenue," the company said.
THAI has witnessed exponential growth in revenue since November 2021. The average number of passengers using THAI and its subsidiary airline, Thai Smile Airways, from June 1-27 this year has increased to 12,568 and 12,257, respectively, compared to 269 and 4,929 between April and October last year.
THAI's cabin factor from June 1-27 this year has risen to 75 per cent, while its booking rate in the third quarter this year has risen significantly after the country’s reopening.
Published : July 01, 2022
By : THE NATION