BANGKOK, Thailand – Thai Airways International Public Company Limited (THAI) has announced significant progress in its debt-to-equity conversion process, a critical milestone in the company’s ongoing rehabilitation plan. Following the approval of its filing by the Securities and Exchange Commission (SEC) on November 18, THAI aims to complete the process by the end of this year, paving the way for its return to trading on the Stock Exchange of Thailand (SET) in the second quarter of 2025.
The conversion process is designed to restructure the company’s finances, stabilize its equity, and ultimately allow for the lifting of its rehabilitation status. The plan encompasses three key components:
- Mandatory Debt Conversion: Up to 14.86 billion shares will be issued to creditors at 2.5452 baht per share, totaling approximately 37.83 billion baht. This portion will be allocated automatically to eligible creditors as outlined in the rehabilitation plan.
- Voluntary Debt Conversion: An additional 4.91 billion shares, valued at up to 12.5 billion baht, will be offered to creditors who opt to convert more of their debt into equity.
- Interest Debt Conversion: Up to 1.9 billion shares, worth approximately 4.85 billion baht, will be issued to cover the conversion of deferred interest accrued under the rehabilitation plan.
Creditors eligible for voluntary conversion, including bondholders and financial institutions listed in the rehabilitation plan, can exercise their rights from November 19 to November 21, 2024. They may submit requests in person at designated locations, such as Krungthai Bank branches, or online via the Krungthai Money Connect platform.
Share Lock-Up Period and Financial Stability
To ensure market stability after THAI resumes trading on the SET, shares allocated under the debt-to-equity conversion will be subject to a lock-up period. Creditors will be restricted from selling their shares for one year, though 25% of the shares will become tradable after six months.
The debt-to-equity conversion is expected to make THAI’s shareholders’ equity positive for the first time in years, a crucial condition for lifting the rehabilitation status. The process is set to conclude by December 31, 2024, after which the company will hold a shareholder meeting to appoint a new board of directors and formally request the Central Bankruptcy Court to terminate the rehabilitation plan.
Preparing for the Future
Once the debt conversion is completed, THAI plans to issue additional shares to existing shareholders, employees, and private investors through private placements. The offering price will not be lower than the debt conversion price of 2.5452 baht per share.
THAI is also working to enhance its operational and service efficiency to strengthen its competitive position in the market. The airline has committed to optimizing its route network, upgrading its fleet, and focusing on high-quality services that highlight Thai hospitality. THAI will also expand its direct sales channels through its website and new mobile application and develop international customer service centers to meet diverse passenger needs.
These efforts align with the company’s broader strategy to regain its position as Thailand’s national carrier and establish itself as a leading aviation hub in the region.
By achieving these milestones, THAI aims to ensure sustainable growth and a return to financial stability, targeting SET reentry by Q2 2025, a goal that signals a significant turnaround for the company after years of challenges. (TNA)
