Finance Ministry sees THAI’s rehab exit in Feb, no extra funds needed
The Thai national carrier is on track to exit its rehabilitation process by February 2025, with plans to re-list on the Stock Exchange by May thanks to strong performance
The Finance Ministry believes that Thai Airways International (THAI) may not require additional capital and it may exit the rehabilitation process by February thanks to its continually improving performance.
Now that it has achieved all its targets under the rehabilitation plan, the national carrier can be re-listed on the Stock Exchange of Thailand by May next year, Tibordee Wattanakul, director-general of the State Enterprise Policy Office, said on Thursday.
He explained that as a major shareholder of the airline, the Finance Ministry has earmarked 12.5 billion baht to boost THAI’s capital, which will bring its shareholding ratio up to 41% from 40%.
“However, this may not be necessary since the airline’s performance is improving,” he said, adding that the decision for capital increase by the ministry and other shareholders is still under consideration.
Tibordee added that THAI creditors, which also include the Finance Ministry, are deliberating the appropriate ratio of debt-to-equity swap, which will allow debtors to get their money back faster while also maintaining a strong business operation.
“The ratio has been initially set at 24.5% and could be further increased if the airline continues reporting strong performance,” he said.
THAI filed for bankruptcy protection in late 2019 after reporting massive debts of 245 billion baht. In May 2020, the Cabinet approved a rehabilitation plan under the Bankruptcy Act, and the Central Bankruptcy Court approved it in June 2021.
After meeting its revenue targets this year, the airline is preparing to issue rights offerings to help with rehabilitation.
