Bankruptcy and reconstructing plan
Image adapted from: Asia News
On Tuesday, Thailand’s Prime Minister Prayut Chan-o-cha announced that the cabinet approved a plan to bring Thai Airways to the central bankruptcy court in an attempt to revive it from its financial’s crisis.
Image credit: Thailand Business News
“It was a difficult decision to make,” said the PM, “but it’s for the good of the nation and the people.”
The national carrier will meet with the debt reconstructing plan under the supervision of the central bankruptcy court. However, it will continue to operate during this change.
“The government has reviewed all dimensions … we have decided to petition for restructuring and not let Thai Airways go bankrupt. The airline will continue to operate,” Gen Prayut said.
No longer state-owned
Image credit: Bangkok Post
According to Bangkok Biz News, the Finance Ministry will also sell off 3% of their share in the enterprise, decreasing the overall value to under 50%. This will effectively remove the ‘state-owned’ status of the airline.
However, the THAI union has been publicly opposing this proposal even before it was being considered.
Thai Airways has a total of ฿245 billion in debt with only ฿257 billion in assets.
More details about the reconstructing plan have yet to be released.
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