Thai Airways International (THAI) is set to submit its restructuring plan to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) on Monday, marking a significant step toward concluding its four-year business rehabilitation.
President Chai Eamsiri announced that this filing represents the first phase of the airline’s organizational restructuring. An associated capital restructuring plan aims to enhance investor confidence as THAI moves towards recovery.
“The submission to the SEC and SET is a comprehensive document spanning 2,000 pages that details THAI’s business strategies and aircraft procurement plans,” he stated on Saturday. “We believe this will strengthen investor confidence following our exit from rehabilitation.”
Eamsiri expressed optimism that the capital restructuring would be successful, given the ongoing discussions with creditors, most of whom have supported the rehabilitation initiative.
To exit the rehabilitation phase, the airline must fulfill four obligations, one of which includes a requirement to raise capital. THAI must also sustain earnings before interest, taxes, depreciation, and amortization (EBITDA) of at least 20 billion baht and appoint a new committee if there is a change in shareholders.
In November, creditors are expected to indicate whether they plan to convert debt into equity. A share offering for pre-rehabilitation shareholders and employees, along with a private placement, is anticipated to occur in December.
THAI is expected to request to exit the rehabilitation plan with the Central Bankruptcy Court after February, with its shares likely to resume trading in the second quarter of next year.
The SET suspended trading of THAI shares in May 2021, citing potential delisting risks due to negative equity and non-compliance with minimum listing standards. The company was given until 2025 to address these issues.
Previously, THAI had filed for bankruptcy protection, and the court approved its rehabilitation plan on October 20, 2022. As of September 30, 2020, the company’s total liabilities reached 200 billion baht.
As part of the rehabilitation plan, THAI reduced its workforce by half, bringing it down to around 10,000 employees. It also eliminated unviable and unprofitable routes and scaled down its fleet from approximately 100 aircraft to 64 by the end of 2022. The airline generated additional revenue through the sale of planes and other assets, including its THAI Catering division.
In the first half of 2024, THAI reported a net profit of 2.7 billion baht on revenues of 89.9 billion baht, reflecting a 14% increase compared to the same period the previous year.