Creditors delay vote on Thai Airways rehabilitation plan
On May 12, 2021, Bangkok-based Thai Airways announced that creditors delayed a vote on the airline's rehabilitation plan.
During the meeting on May 12, 2021, Thai Airways creditors pushed the vote back, arguing that they needed more clarity about the airline’s rehabilitation plan. The creditors would cast their votes for the rehabilitation plan during a newly scheduled meeting on May 19, 2021.
“Since 20 creditors who hold the total debt amount have requested for the meeting postponement, the Official Receiver ordered the postponement of the creditors' meeting, and has scheduled the new date for creditors' meeting via electronic media,” read Thai Airways statement.
Thailand’s national air carrier needs more than 50% of creditors to approve the rehabilitation plan ‒a measure to swing the cash-strapped Thai Airways into profitability.
On March 2, 2021, Thai Airways submitted its rehabilitation plan in accordance with the Central Bankruptcy Court of Thailand. The plan still has to be approved by the airline’s creditors as well as the Central Bankruptcy Court.
As part of the plan, Thai Airways has already implemented measures to cut costs, which include reducing the number of staff to approximately 14,000-15,000 by 2025. The airline has already cut its workforce from 28,000 employees in 2019 to 19,500.
Thai Airways has been reporting losses since 2013 which resulted in capital deficiency and lack of financial liquidity. In FY 2020, the airline suffered a record loss of 141 billion baht ($4.6 billion) amid the ongoing pandemic.
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