Thailand govt to help debt-ridden Thai Airways remain afloat
A government panel is stepping up to help debt-ridden Thai Airways pass regulatory and contractual hurdles ahead of the national carrier’s planned debt rehabilitation.
According to Prapas Kong, director-general of the State Enterprise Policy Office (SEPO),
a state-appointed committee following up on the airline’s rehabilitation, headed by Deputy Prime Minister Wissanu Krea-ngam, will arrange the help.
The troubled airline turned to the government because it has many contracts with trading partners and legal obligations that can only be resolved with the state’s help. These problems should be cleared before Thai Airways enters rehabilitation, Prapas Kong said.
The airline formally asked the Wissanu committee to coordinate with the government during a meeting when Thai Airways acting president Chakkrit Parapuntaku presented a progress report on the carrier’s rehabilitation plan which will next go to the Central Bankruptcy Court (CBC).
The carrier needs to stay in business to generate revenue and pay off 244.9 billion baht of outstanding debt to national and international creditors. The airline will address the court and try to convince creditors that the rehabilitation plan will work. The airline specifically needs the government’s help in reallocating slots for its flights. The transport ministry will have a say on what could be done in this area.
The Foreign Affairs Ministry will notify the authorities in countries where the airline provides services about the airline’s rehabilitation before the bankruptcy court. This will prevent its aircraft from being impounded by overseas creditors.