Thai Airways Drops Debt Restructuring Plan

Piyasvasti Amranand, Director and former Chief Restructuring Officer of Thai Airways International Public Company Limited, on Monday said that Central Bankruptcy Court in Bangkok has ended the rehabilitation process of Thai Airways International (THAI) thus paving way for the airline to relist on Thai Exchange in August this year.

This decision follows the completion of all four key conditions stipulated in the rehabilitation plan. These conditions include registering an increase in the company’s capital to support financial restructuring, implementing the rehabilitation plan without default, achieving positive shareholder equity resulting from capital restructuring, and the approval of a new board of directors by the extraordinary shareholders’ meeting on 18 April 2025.

According to media reports, following this, the company will proceed to seek regulatory approval to relist its shares on the Stock Exchange of Thailand, aiming for completion by early August 2025.

Over the past four years, the company has successfully executed crucial rehabilitation measures, including restructuring and resizing the organisation for increased agility, expanding its flight network across regions, and upgrading aircraft and cabins.

As for debt settlement within the rehabilitation framework, Thai Airways faced creditor claims exceeding $12.32 billion when rehabilitation was filed in May 2023. As of now, the company has a final obligation of about $5.84 billion under the court-approved rehabilitation plan.

By the first quarter of 2025, Thai Airways had repaid approximately $2.89 billion and remaining is scheduled to be settled by 2036.

Collective Commitment

According to a report in Bangkok Post, Thai Airways CEO Chai Eamsiri said that the successful rehabilitation is a significant milestone reflecting the collective commitment, dedication, perseverance, and sacrifices made by all stakeholders, including creditors, shareholders, customers, partners, former and current employees alike.

“The current financial robustness and achievements during the rehabilitation process lay a strong foundation for future sustainable growth, encompassing business, social, and environmental dimensions,” he said.

Amranand said that over the past four years the airline restructured its organisation, expanded flight routes, adjusted its fleet, improved services and passenger cabins, upgraded its digital system, enhanced income generation capabilities and cut costs.

The airline also strengthened its financial status by converting liability into equity and offering additional common shares to shareholders and staff. The airline had made a profit from its operation in every quarter since 2023 and was one of three airlines with the biggest operating margins in the past two quarters, he added.