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Thai Airways, Thailand’s flag carrier to file for bankruptcy

News

Thai Airways, Thailand’s flag carrier to file for bankruptcy

The State Enterprise Policy Office (SEPO) approved, on Monday, Thai Airways International (THAI)’s rehabilitation plan which will allow it to file for a bankruptcy, The Thai Enquirer reported.

Government spokesperson Narumon Pinyosinwat said after the SEPO meeting that THAI is to file for the bankruptcy with the Central Bankruptcy Court in Thailand after being green lit by the prime minister during the meeting.

When asked by reporters whether the Ministry of Finance will lower its holding of THAI’s shares to be less than 50 per cent, Narumon was noncommittal.

THAI’s loan repayment deadline is set for the end of May but the airlines is unable to meet its obligation due to the ongoing coronavirus pandemic which has halted the operations of airlines around the world.

Ex-THAI board member Banyong Pongpanich said last week that the loss-making state-owned enterprise now has more than 300 billion baht in debt.

The airline said in early April that they only have enough cash left to pay their employees’ wages for one month as the yearly budget for 2020 is now down to 10-12 billion baht.

The flagship carrier posted a net loss of 2.11 billion baht in 2017, 11.6 billion baht in 2018 and 12 billion baht in 2019.

This article is taken from Thai Enquirer

Photo: LightRocket via Getty Images

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