Marred by financial difficulties even before the COVID-19 pandemic, Thai Airways filed a petition for rehabilitation to the Central Bankruptcy Court (“CBC”) earlier in May this year to save itself from bankruptcy and to allow it to continue operations. This petition was accepted by the CBC on 16 June 2020 for consideration, after which it issued an announcement on the Royal Thai Gazette to notify the company registrar, official receiver, and creditors that it has received the petition and will schedule a hearing on 17 August 2020. Creditors who object to the struggling airline’s rehabilitation have been given until 13 August 2020 to file their objection to the CBC.
The CBC will either approve or reject the petition during the 17 August hearing and will likewise appoint a planner to prepare the flag carrier’s rehabilitation plan. Once a planner has been appointed and announced in the Royal Thai Gazette, creditors will have one month to file their application for debt repayment. Those that fail to do so before that time period will forfeit their right to claim their debt.
According to Thai Airways’ Acting President Chansin Treenuchagron, the airline has already began conceiving the initial stages of the plan with help from various firms such as EY Corporate Advisory Services and Finansa Securities.