A final vote meeting on Thai Airways’ debt restructuring program has been set for this Wednesday after being delayed last week.
Meanwhile, a source close to those running the Thai Airways debt recovery plan says the state is under no obligation to provide a helping hand to the domestic carrier. The Bangkok Post reports that Chansin Treenuchagron, acting president of Thai Airways, says no such promise has been made and that the government is not obliged to take on the role of loan guarantor for the airline.
Representatives from the Ministry of Finance are understood last week to have attended an online meeting between the airline’s debt recovery planners and its creditors. However, Chansin says the ministry’s presence at the meeting is not a sign that the state will provide a helping hand.
According to a Bangkok Post report, many creditors worry about the carrier’s ability to obtain a loan without the Ministry of Finance’s help, but Chansin insists that if the rehabilitation plan is found to be financially viable, accessing loans will not be a problem , even with the airline’s huge debts.
Voting on the plan was delayed last week after more than 15 creditors requested changes. It is understood that a number of creditors, including the Ministry of Finance, are opposed to the proposed debt relief outlined in the plan. Thai Airways is believed to be trying to postpone redemptions of the bonds.
The vote is now scheduled for Wednesday, when the airline’s creditors will decide whether or not to accept the plan. The carrier needs more than 50% of its creditors to vote in favor of acceptance, at which point it will be submitted for consideration by the central bankruptcy court. In the event of insufficient votes in favor of the scheme, the flag carrier will be declared bankrupt.