Thai Airways officially entered its bankruptcy reorganization on Monday. The carrier’s petition for rehabilitation, filed on 27 May 2020, was granted by the Central Bankruptcy Court on 14 September, allowing the company to proceed with its recovery plans.
A new slate of seven planners were nominated by the company and also approved by the court. These seven effectively act as an interim Board of Directors, managing the recovery process.
With this step now completed Thai Airways shall proceed to finalize its reorganization plan for presentation to the court. That is expected in the fourth quarter of 2020.
Following that filing the company’s creditors will meet to consider the plan in early 2021. If the creditors approve it will then revert to the court to similarly rule.
The company expects to complete the legal steps and be fully into its reorganization process and before the end of Q1 2021.
For passengers awaiting a refund for unused tickets the carrier explicitly states that they are not considered creditors as part of the proceeding. Rather, the company “already discussed the inclusion of a specification of conditions or details relating to such matter in the business reorganization plan as this would eliminate the need for any time-consuming process and prevent customers from incurring any expenses from filing the claim with the official receiver.” Assuming there’s enough money to handle the refunds, of course.
Members of the carrier’s Royal Orchid Plus loyalty program are also not considered creditors of monetary debt, and are “still entitled to enjoy their member privileges.” Exactly what the loyalty program looks like on the other side of the reorganization remains unclear.
The need to restructure the carrier’s affairs was exacerbated by the current pandemic, of course, but ample evidence exists to suggest that is not the only, or even the primary source of the troubles. Local investigations have returned a number of reports showing Thai Airways to be a mess of corruption, graft and other idiocy.
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