Cash-strapped flag carrier Thai Airways International has secured court approval for its proposed debt restructuring.
The Central Bankruptcy Court gave the go-ahead for the airline’s restructuring.
With debts of more than $7 billion, there is a lot of work ahead to get its finances back on track.
"The court’s debt rehabilitation approval is just a tiny step. It’s an uphill task to come up with a debt plan that would satisfy banks, aircraft lessors, suppliers and other lenders," Chanchai Chaiprasit, CEO of PwC Thailand told the Bangkok Post.
According to the airline’s acting president Chansin Treenuchagron, more than half of creditors support its debt restructuring plan.
The airline had major financial strife even before the Covid-19 pandemic.
It had only turned a profit once since 2012.
Since filing for bankruptcy, the Thai government reduced its stake in the airline to less than half, which ended its status as a state-owned enterprise.
Written by Ray Montgomery, Asia Pacific editor
