Thai Airways International (THAI) will present its restructuring plan to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) this Monday, signaling its departure from business rehabilitation after a four-year span.
President Chai Eamsiri stated that this submission signifies the airline’s initial stride towards reshaping its operations. A parallel plan to restructure capital aims to boost investor trust following its emergence from rehabilitation.
“The document to be submitted to SEC and SET is comprehensive with 2,000 pages covering THAI’s business plans and the procurement of aircraft,” he declared on Saturday. “We are confident it will bolster investors’ confidence after its exit from the rehabilitation plan.”
Eamsiri expressed assurance that the capital restructuring strategy would be effective, noting ongoing discussions with creditors, the majority of whom have backed the rehabilitation strategy.
To exit rehabilitation, the airline must address four key responsibilities: augmenting capital, sustaining a minimum Ebitda (earnings before interest, taxes, depreciation, and amortisation) of 20 billion baht, appointing a new committee in case of shareholder changes, and capital restructuring.
In November, creditors are anticipated to announce their decision to convert debt into equity. A share offering to stakeholders prior to rehabilitation and employees, along with a private placement, is slated for December.
THAI plans to petition the Central Bankruptcy Court to exit the rehabilitation framework after February. Trading of its shares is expected to recommence in the second quarter of the following year.
Trading of THAI shares was halted by the SET in May 2021 due to risks of delisting triggered by negative equity and potential non-compliance with market listing standards. The company was given a deadline until 2025 to rectify these issues.
Previously, the company sought bankruptcy protection, and the court sanctioned its rehabilitation plan on Oct 20, 2022. As of Sept 30, 2020, the company’s total liabilities were reported at 200 billion baht.
The rehabilitation strategy led to a workforce reduction by half to about 10,000 employees and the scaling back of unsustainable and unprofitable routes, reducing its fleet from about 100 aircraft to 64 by the end of 2022. The company also generated additional revenue through the sale of planes and other assets, including its THAI Catering division.
For the first half of 2024, THAI reported a net profit of 2.7 billion baht from revenues of 89.9 billion, marking a 14% increase from the corresponding period the previous year.
