Thai Airways launches debt-to-equity conversion as part of rehab plan
SEC gives the airline a go-ahead to get creditors to convert existing debt into equity, marking a huge step towards THAI exiting rehab
Thai Airways International (THAI) is going ahead with its capital restructuring plan as part of its business rehabilitation process.
Following the Securities and Exchange Commission (SEC)’s approval of its securities offering registration statement and draft prospectus on Monday, THAI is now set to implement its debt-to-equity conversion plan.
Under the plan, creditors’ original debts will be converted into common shares as follows:
Mandatory conversion: Up to 14,862,369,633 shares at the par value of 2.55 baht totalling no more than 37.83 billion baht
Voluntary conversion: Up to 4,911,236,813 shares at a par value of 2.55 baht per share, totalling no more than 12.5 billion baht
Deferred interest conversion: Up to 1,903,608,176 shares at a par value of 2.55 baht per share, totalling no more than 4.85 billion baht, will be allocated to support the conversion of new interest debts that have been suspended by creditors under the rehabilitation plan into equity.
This marks a key milestone in the airline achieving positive equity and successfully exiting the rehabilitation process.
Eligible creditors under the rehabilitation plan for debt-to-equity conversion include groups 4, 5, 6, and 18-31, comprising bondholders listed as of October 28 this year. These creditors do not need to take any action regarding the mandatory debt-to-equity conversion, as newly issued common shares will be automatically allocated to them.
For the voluntary conversion of additional existing debt into equity and/or the conversion of new accrued deferred interest into equity, eligible creditors can declare their intention to exercise these rights between Tuesday 9am and Thursday 4pm. Intention forms can be submitted at the head office of the Kiatnakin Phatra Securities Public Company Limited and all branches of Krungthai Bank.
For online submissions, eligible creditors may use Krungthai Bank’s Money Connect system via the Krungthai NEXT application (available only to Krungthai bank account holders).
