Home Business & Finance Thai Airways no longer a state enterprise

Thai Airways no longer a state enterprise

by Worapon Tingchin
Thai Airways no longer a state enterprise
Photo: ecommerceIQ

Thai Airways International Plc is no longer a state enterprise as the Finance Ministry has sold 3.17 percent of its stake to the Vayupak 1 Fund, taking its share in the airline below 50 percent.

The move came as Thai Airways prepares to undergo bankruptcy reconstruction with staff layoffs expected to hit 6,000 employees and assets including aircraft being sold off.

The Finance Ministry sold part of their stake at a rate of four baht per share, 0.9 baht less than the market rate at closing on Friday which stood at 4.90 baht per share.

While the buyer, the Vayupak 1 Fund, was established as a cabinet resolution in 2003, it has the status of a juristic person, meaning that the airline is officially no longer majority state-owned.

Meanwhile, Thai Airways is concerned that creditors may submit themselves as bankruptcy planners and have therefore proposed themselves as the rehab planner for bankruptcy court.

The airline wants the process to be completed as soon as possible, however, creditors will likely oppose the proposal set out by Thai Airways which could lead to a long and drawn-out process.

Thai Airways currently has outstanding debts totaling more than 200 billion baht, of which 70 percent is owned internationally.

Source: Bangkok Post