Thai Airways Approaches Discharge from Rehabilitation, Prepares for Stock Exchange Re-entry
Airline's Shares to Potentially Resume Trading as Early as July Following Court Decision
Prepare for takeoff, folks! Thai Airways International Plc (THAI), the national carrier, is now nearing the end of its rehabilitation program, with a critical verdict coming from the Central Bankruptcy Court on June 16, 2025, at 9:00 AM.
If the court gives the green light, THAI's shares are anticipated to make a comeback on the Stock Exchange of Thailand (SET) as soon as July this year!
According to Piyasvasti Amranand, Chair of the Executive Committee for THAI's rehabilitation plan, the court will decide on the airline's petition to wrap up its rehabilitation. Amranand shared this news following Wednesday's hearing, confirming that THAI has meticulously complied with all stipulations outlined in the rehabilitation plan, and the Official Receiver has issued a written confirmation in support of this claim.
Once the court makes a favorable ruling, THAI will revert back to being a standard company. This means executive powers will be handed back to the shareholders and the Board of Directors, aligning THAI with typical corporate governance structures. The duties of the plan administrators will cease immediately upon the court's order.
As THAI works towards resuming trading on the SET, the airline is actively gearing up for its comeback. Despite the procedures that need to be followed by the SET, there's a high chance THAI will meet its target of restarting securities trading in July.
In the meantime, the Central Bankruptcy Court also dealt with an additional debt repayment claim filed by a witness representing eight labor creditors. THAI's legal team made it clear that the plan administrators have paid all debts fully and according to the agreed plan. Claims of non-payment were refuted, as the creditor's submission pertained to unused holiday compensation from 2014 to 2016. The Central Bankruptcy Court ultimately dismissed the entire debt repayment claim.
Piyasvasti emphasized that these claims by a group of former employee creditors have not impacted the process of terminating the rehabilitation. While some employees attended the court hearing, no formal objections were submitted. THAI maintains that all compensation payments have been made in line with court judgements, and no court has ruled that any payments constituted discrimination. The airline has provided comprehensive clarification to the court, and the Official Receiver has backed that the entire debt settlement process has been conducted accurately and thoroughly.
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- Thai Airways International Plc (THAI)
- Rehabilitation Plan
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Enrichment Data:The expected outcomes of the Thai Airways International Plc (THAI) bankruptcy court ruling on June 16, 2025, and its impact on the resumption of trading of its shares on the Stock Exchange of Thailand (SET) are significant. Here are some potential outcomes:
- Resumption of Share Trading: If the court approves the exit from bankruptcy proceedings, it paves the way for Thai Airways' shares to potentially resume trading in July 2025. This allows investors to buy and sell shares again, increasing liquidity and activity for the stock.
- Financial Stability: A favorable decision indicates progress in managing THAI's significant liabilities of about 80 billion baht, which extend until 2036.
- Investor Confidence: The resumption of trading could boost investor confidence, suggesting that the airline is on the path to recovery and reorganization, potentially attracting new investors and improving market sentiment.
- Operational Reforms: The ruling facilitates the implementation of operational reforms and restructuring plans, crucial for the airline's long-term sustainability and competitiveness in the aviation market.
Overall, a positive outcome from the court offers a significant milestone for Thai Airways as it endeavors to tackle its financial challenges and re-establish itself as a thriving player in the global aviation industry.
- Following the court's approval of the rehabilitation plan on June 16, 2025, Thai Airways International Plc (THAI)'s shares could potentially resume trading on the Stock Exchange of Thailand (SET) by July 2025, marking a significant step for the airline's financial recovery.
- A favorable court decision would signify progress in addressing THAI's considerable debts estimated at approximately 80 billion baht due by 2036, potentially bolstering investor confidence in the airline's financial stability.
- The resumption of share trading on the SET could attract new investors, improve market sentiment, and align THAI with international finance and business standards, positioning it for long-term success in the global aviation economy.
