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The “Thai Airways” plan was launched to raise an additional 50 billion funds to improve liquidity by the year ’65. Revealing the debt, submitting a request for payment of the 4.1 billion, confirming that there are no traces of debt. Using the debt tranche Ready to pay the debt during the first 3 years As for the creditors for the plane rental, we will only pay the principal. Hold a meeting of creditors to vote on the plan on May 12. Ready to continue generating revenue: reduce costs continuously Ready to return to service flights in Europe – Asia in the third quarter of this year.
Chansilp Treinuchakorn, Acting Chairman of Thai Airways International Public Company Limited, revealed that according to the Central Bankruptcy Court, he ordered Thai Airways to rehabilitate the business and establish a planner on September 14, 2020.
Today (March 2, 2021), Thai Airways has filed a commercial rehabilitation plan with the Official Receiver in accordance with the legal period. And it is planned to call a meeting of creditors. To vote to approve the rehabilitation plan on May 12, in which said rehabilitation plan is a 5-year operating plan (2021-2025), the company wants to raise funds for working capital and add liquidity of 50 billion euros. baht in 2 This year, it comes from multiple channels such as capital increase, loan, new alliance, with 30 billion it will have to arrive in the middle of this year.
For the debt requested for payment, the total amount is 4.1 billion baht, while the debt that Thai Airways accepts and stipulates in the plan is approximately 1.8-1.9 billion baht. The company has not requested to cut the value of the debt (haircut) of the creditors in any way. By choosing to use a method of gradually extending debt repayment Each group has a different duration.
For example, the obligation group, which is a large group of creditors, will average the repayment of 6 years from the due date. Or group of aircraft lessors The company negotiated a payment for the repayment of the principal. And request a suspension of the debt for the first 3 years. In addition, it has opened an option for the creditors to also convert the debt into equity.
“In the plan that we present today, we have been working with our expert advisors for 7-8 months, although not all the details are what we want. Because we have to negotiate with many creditors. But it is believed that it will be a plan that the creditors have voted to approve and that can go ahead. “
Chansilp said Since Thai Airways filed a petition for business rehabilitation with the Central Bankruptcy Court I realized the importance and urgency of making the Thai Airways business survive. Therefore, there are measures to generate revenue and reduce expenses to their full potential, such as increasing the revenue of both aviation-related companies AND non-aviation-related businesses.
The company plans to resume its international service in the third quarter of this year, with flights to Europe such as Frankfurt, London, Paris, Zurich, Copenhagen and in Asian regions such as Osaka, Haneda, Narita, Seoul, etc., with routes. to China targeting Beijing, Shanghai is in negotiations. This plan will allow the company to start generating revenue from aviation services in the third quarter of this year onwards.
In the past, the cost reduction plan negotiated with the aircraft charterer to reduce costs by approximately 40% and reduce the size of the organization. Which aims to reduce the workforce from about 29,000 people in 2019 to approximately 13,000-15,000 people
It also has plans to reduce the size of the fleet. And lowered from the current 12 to 5, lowered from 9 to 4 and lowered from the current 103 to 85 by 2025
“The cost reduction approach of the existing plan is expected which will allow the company to reduce operating expenses by approximately 50 billion baht over the two years, and is expected to return to profit by 2024.”
Chansil added that Thai Airways has done everything possible to prepare a rehabilitation plan that is beneficial and fair to its creditors. Planners propose Mr. Piyasawat Amranant and Mr. Jakkrit Parapantakul are the plan executives to continue managing and managing the business under the business rehabilitation process.
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