BANGKOK (NNT) – Thai Airways International (THAI) has announced that it is finalizing its restructuring plan for submission to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET). This marks a critical step toward the airline’s goal of exiting its business rehabilitation process, which began nearly four years ago.
The comprehensive 2,000-page plan outlines a detailed business strategy that focuses on capital restructuring and future aircraft procurement. Part of the strategy aims to boost investor confidence as the airline transitions into its post-rehabilitation phase. THAI is targeting a significant financial recovery, with a focus on maintaining earnings before interest, taxes, depreciation, and amortization (EBITDA) of at least 20 billion baht.
One key feature of the plan is a scheduled debt-to-equity conversion by creditors, set to take place in November 2024. This will be followed by share offerings to pre-rehabilitation shareholders and employees, slated for December. The airline is expected to seek court approval to officially exit rehabilitation by February 2025. Once approved, THAI aims to resume trading its shares on the SET by the second quarter of 2025. Trading of THAI shares has been suspended since May 2021 due to negative equity and non-compliance with market regulations.
The airline’s restructuring comes after significant downsizing measures, including cutting its workforce by 50% and reducing its fleet to 64 aircraft. Despite these challenges, Thai Airways posted a net profit of 2.7 billion baht for the first half of 2024, with revenues of 89.9 billion baht—an increase of 14% from the same period last year.
As THAI continues its recovery, the company remains focused on stabilizing its financial position and regaining investor confidence. The success of the restructuring plan will be a pivotal factor in the airline’s long-term recovery.
Officials & Attendance
Officials have indicated that approval from key stakeholders, including the SEC and the courts, is crucial in determining the airline’s future trajectory. The restructuring plan’s submission and subsequent court approval are seen as essential milestones in Thai Airways’ return to financial stability.
