Thai Airways International Plc has submitted petitions to courts in Switzerland, Japan, and Germany to protect its assets. The airline is also in the process of petitioning courts in the United States.
If the petitions are approved, Thai Airways will gain protection against the seizure of assets, including aircraft operating scheduled flights.
The Thai cabinet was informed about proceedings by Deputy Prime Minister, Wissanu Krea-ngma, who heads a committee appointed by the government to coordinate a solution to the ongoing issues.
The airline had flown to all countries where petitions are submitted, except the United States before the coronavirus pandemic grounded the entire fleet of Thai Airways.
The debt-rehabilitation requests submitted by the airline in Germany, Switzerland, and Japan, and in the process of submission in the United States, will limit the number of creditors objecting to a rehabilitation plan when it is presented to the Central Bankruptcy Court in Thailand.
Should any creditors object to the plan, due for submission before August 17th, it would greatly complicate the airline’s ability to execute a rehabilitation procedure.
Currently, the airline has monthly fixed expenses of between five and six billion baht per month. Without assistance, it does not have enough cash to pay its bills at the end of June, leading to urgent talks with agencies to find emergency funds.
Despite their desperate situation, Thai Airways is planning to resume both domestic and international flights in July when the flight ban into Thailand is due to finish.
Source: Bangkok Post