BANGKOK, Thailand – Thai Airways International (THAI) has announced a plan to submit its restructuring plan to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET), a major step towards exiting its business rehabilitation. The submission is part of a capital restructuring strategy to restore investor confidence as the airline prepares for a post-rehabilitation phase after nearly four years.
The restructuring plan is a comprehensive 2,000-page document detailing its business strategy and future aircraft procurement. This includes capital adjustments and maintaining earnings before interest, taxes, depreciation, and amortization (EBITDA) of at least 20 billion baht. A key element is a scheduled debt-to-equity conversion by creditors in November, followed by share offerings to pre-rehabilitation shareholders and employees in December.
THAI plans to seek court approval to exit the rehabilitation process by February 2025, expecting its shares to resume trading in the second quarter of next year. Trading of THAI shares has been suspended since May 2021 following concerns about negative equity and non-compliance with market requirements. The company was granted until next year to resolve these issues.
The restructuring follows a period of significant downsizing, during which THAI reduced its workforce by half and cut its fleet to 64 aircraft. Despite these measures, the airline reported a net profit of 2.7 billion baht on revenue of 89.9 billion baht in the first half of 2024, a 14% increase from the same period last year. (PRD)
