Thai Airways [THAI] are entering into negotiations with creditors to avoid potential roadblocks when the company enters the bankruptcy court in August, officials said Tuesday.
According to Deputy Prime Minister Wissanu Krea-Ngam, the company are currently holding talks with foreign creditors to prevent future asset seizure. About 49 per cent of Thailand’s 200 billion baht debt is owed to foreign creditors mainly in the US, England and Germany.
The company’s assets in Thailand are currently protected by bankruptcy law until the company and debtors attend the first hearing scheduled for August 17.
Wissanu said that current talks are with creditors in Switzerland and Germany with Japan following the first round of negotiations.
The prime minister said that the company has seven tasks to complete before the first hearing in August.
They are:
- Negotiations with creditors
- Dealings with foreign courts
- Dealings with employees
- Communications with outsiders
- Management of documentation
- Arrangement of documentation
- Budgetary and performance evaluation
Stock scenario
SCB Securities (SCBS) said this week that they maintain a “cautious view” on THAI since several factors remain “uncertain.”
This includes an unknown rehabilitation plan and an uncertain period for recovery. The aviation industry is currently seeing its worse crisis in years due to the coronavirus pandemic.
The securities analysts at SCB said that until the rehabilitation plan is approved or rejected by the court, it will be hard to gauge the stock’s futures.
