At least two onshore legal firms have been approached by creditors of Thai Airways International Pcl (Thai Airways) for legal restructuring advice, according to two sources briefed on the matter. One of the firms is expected to finalise its engagement as early as tomorrow (May 22), one of the sources said.
Meanwhile, the next steps to restructure the Thai national carrier would include the Ministry of Finance (MoF) divesting its 51% majority stake in carrier in order to strip it of its SOE status and
the airline nominating a group of ‘planners’ or restructuring administrators before filing a rehabilitation plan with the Thai Bankruptcy court, an onshore bondholder and a previous holder told Reorg.
This comes on the back of the Thai cabinet’s approval of a plan to restructure the debts of long-suffering national carrier,
as reported.
The airline would need to be stripped of its SOE status so it can be treated as an ordinary listed company when it petitions the Thai Bankruptcy court for rehabilitation, one of the sources detailed. A
Reuters report says that state-owned companies are governed by another set of management and labour regulations under Thai law, which impacts the rights of Thai Airways workers’ union.
Local news
reports like the
Bangkok Post, quoting the Thai transport minister Saksayam Chidchob, said that the MoF will sell 3.17% of its stake in Thai Airways to the state-run Vayupak 1 Fund.
The carrier needs to propose a list of 15 planners to the Thai prime minister Prayut Chan-o-cha, the sources added, and upon his approval be submitted to the Thai Bankruptcy court. A proposed list of administrators is expected to be presented to the prime minister as early as next week and the redemption plan is expected to be filed with the Bankruptcy court in early June, one the sources detailed.
The
Bangkok Post report also said that the transport minister had given the airline a free reign to select up to 30 professionals to be appointed as rehabilitation planners.
-- Nidhi Pandurangi