Thai Airways wins court approval for restructuring plan

Aviation Updates Philippines – Thai Airways won court approval for its rehabilitation plan to help restructure its THB 400 billion debt (~USD $12.8 billion) in a bid to turnaround its financial situation.

Image: Thai Airways Boeing 777 (Credit: Thai Airways)

The airline recently received the ruling at a hearing at Thailand's Central Bankruptcy Court with no changes to plan that received approval from the airline's creditors.

“We are satisfied with the decision," Somboon Sangrungjang of law firm Kudun and Partners - which represents 87 saving cooperatives - was quoted in a report from Reuters.

According to the restructuring plan, the airline will rely heavily on debt extensions and debt-to-equity conversions. The airline has previously stated it will reduce its fleet size from 103 jets to 83 by 2025.

In all, Thai Airways has cut around THB 30 billion in expenses. It has also seen the reduction of the airline stake held by the Thai government to around 47.86%, ending its status as a state-enterprise.

TG Change in CEOs

Following the ruling, Thai Airways announced that acting Chief Executive Chansin Treenuchagron resigned.

Taking the helm of the airline during the restructuring process will be current chief of human resources Suvadhana Sibunruang.

While Treenuchagron stepped down from post, he will still be part of a committee of five who will administer the plan. Joining Treenuchagron on the committee is former Thai Airways CEO Piyasvasti Amranand who was at the helm of the airline when the airline made profits between 2009 and 2012.

According to the Bangkok Post and Reuters, Thai Airways will hold a press conference next week Tuesday.