Thai Airways released a disclosure on Wednesday stating its inability to pay off a cumulative debt of $2.7bn (Bt85 billion). The airline, which successfully filed for a rehabilitation request at the end of May, has defaulted on debts to banks and official government stakeholders.
On May 18th, CIMB Thai Bank appealed for payment of principal and interest in promissory notes due on May 26th. The amount owed but defaulted is nearly $32m. Similarly, the Islamic Bank of Thailand issued a letter the same day requesting for payment worth $15.8m. The sum was to be paid on May 22nd.
Additionally, the Public Debt Management Office under the Ministry of Finance requested for principal payment, interest, and on-lend fees by June 15th. As of May 22nd, the amount is $378m.
The unredeemed debentures make up the remaining amount of $2.2bn (Bt71.6 billion). As a result, the accumulated debt is $2.7bn, equivalent to 33.14% of Thai Airways’ total assets.
Rehabilitation plan approved
In the official disclosure sent to Simple Flying, Thai Airways revealed that the submitted rehabilitation petition was done due to the carrier’s current financial standing. As such, the Central Bankruptcy Court accepted the airline’s rehabilitation petition on May 27th.