Thai Airways to file bankruptcy
Reuters is reporting that Thailand plans to go to bankruptcy
court to submit a rehabilitation plan for its national carrier, Thai Airways
International, rather than go ahead with a previously planned rescue. “The
State-Enterprise Planning Office agreed in principle for the rehabilitation of
Thai Airways in court…the procedure will be submitted to Cabinet tomorrow,” government
spokeswoman Narumon Pinyosinwat told Reuters.
The procedure replaces a previous rescue plan, which
involves the airline seeking a 58.1 billion baht (S$2.6 billion) loan
guaranteed by the government. “It is similar to filing Chapter 11 in the United
States,” she said, adding that details of the rehabilitation plan have not been
discussed.
Thai Airways, like every other carrier in the world, has
suffered because of the COVID-19 pandemic and the virtual halt to air traffic.
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