“Can” analyze what will happen If the state does not carry Thai Airways?

“Can” analyze what will happen If the state does not carry Thai Airways? Thai Airways hopes to file a petition with the Central Bankruptcy Court for rehabilitation.

On May 12, Mr. Samart Ratchaphonsit, Deputy Director of the Democratic Party, Posts on Facebook about What will happen? If the state does not transport Thai Airways, declaring that

We look forward to today’s cabinet meeting resolution (May 12, 2020) on whether or not the Finance Ministry is approved to guarantee short-term loans to Thai Airways. But in the end it seems that no proposal has been presented to the Cabinet.

I heard that one of the parties wanted to propose The Cabinet considers only the guidelines to reduce the Ministry of Finance’s share participation index from 51.03% before to no more than 50%. The other party wants to push to propose all methods. In addition to reducing the shareholding of the Ministry of Finance, other guidelines include (1) the Ministry of Finance to guarantee short-term loans of approximately 54.7 billion baht that Thai Airways needs (2) allowing Thai Airways to increase its capital by 83.4 billion baht (3) to Convert a business unit into a company (4) to change ticket sales methods and (5) to improve organizational structure Modify flight routes Reduce the number of employees, etc. As approved by the State Board of Business Policy (Ror.) When opinions do not coincide Therefore, there is no consideration for Thai Airways

If in the end there is no consideration for the Ministry of Finance to guarantee loans for Thai Airways Thai Airways will lack liquidity. What will happen to Thai Airways after this is very interesting.

I hope Thai Airways files a petition with the Central Bankruptcy Court for a commercial rehabilitation. Because the advantages of Thai Airways are as follows

1. able to continue business

2. Suspension of debt payment. Because creditors cannot compel Thai Airways to pay the debt during the rehabilitation period. Therefore, Thai Airways has time to rehabilitate the business, such as reducing fleets, changing routes, Modifying ticketing methods, Reduces the number of employees, Reduction of wages and benefits, etc.

3. Negotiate creditors to reduce debt. Extend the repayment period AND you can convert debt into equity

however Entering the commercial rehabilitation process has disadvantages for Thai Airways. And overview of the country as follows

1. It takes a long time to rehabilitate the business.

2. Savings cooperatives that purchase Thai Airways obligations may lack liquidity. Because you do not receive interest and principal from Thai Airways for a period

3. It can affect the credibility of the bond market (It means bonds sold by government agencies OR bonds that are sold by a private company)

If commercial rehabilitation is unsuccessful, the court may cancel the commercial rehabilitation plan. And Thai Airways’ creditors can petition the court that They can order Thai Airways to declare bankruptcy, the court can appoint an official to manage the liquidation Collect all assets AND bring the average to pay the debt to all creditors In fact , the creditor will receive a much lower refund than the actual debt. But this method is considered the last method that the law can apply with Thai Airways

Therefore, it should be followed without blinking that the Cabinet will call “Wait or not Thai Airways transport” soon