Thai Airways International Plc will seek restructuring via a bankruptcy court after the Cabinet approved a rehabilitation plan for the troubled state enterprise.
The Cabinet meeting chaired by Prime Minister Prayut Chan-o-cha on Tuesday agreed to the plan proposed by the state enterprise policy committee, paving the way for THAI to start restructuring process in the court.
The national flag carrier which is majority owned by the Finance Ministry has outstanding debt of about 92 billion baht. It has been hit by the COVID-19 pandemic after all international flights have been banned.
Prayut said there were three options for THAI; receiving help from the government, going bankrupt and restructuring. His government viewed the last option was the best in the hope that THAI would be stronger under the rehabilitation plan.
The first option was to repeat past actions and would cost taxpayers’ money which was not the right way especially considering the COVID-19 crisis, he said.
Thai Airways International should be an organisation that promotes the country’s reputation and generate income for Thai people, Prayut said.
The government would report details of the restructuring steps after the ruling by the court, said the Prime Minister. (TNA)
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