InfoQuest (May 27, 2020) --Thailand's Central Bankruptcy Court (CBC) today has accepted THAI's business rehabilitation petition and set the first hearing for August 17, if creditors have no objections, said Mr. Prapas Kong-ied, director general of the State Enterprise Policy Office (SEPO) and member and chairman of the Problem Executive Committee of the Thai Airways (THAI).
Now that CBC has accepted THAI’s petition for consideration, THAI needs to distribute the petition copies to all the creditors, totaling more than 10,000. By type, the ailing airline's creditors can be divided into trade creditors, loan creditors and bond creditors. Notably, Royal Orchid Plus Members are also among the creditors.
Foreign creditors can accept the petition to get the rehabilitation procedures started instead of invoking the Chapter 11 of the United States Bankruptcy Code, and file an application to courts in countries where THAI possesses assets or operates flights to issue a public announcement and put the beleaguered airline under protection from lawsuits filed by other creditors demanding debt repayment.
During the period, THAI will negotiate with creditors out of court. If creditors have no objection after deliberating over the rehabilitation plan, the plan will be submitted. If there are some objections, bankruptcy administers will assemble a meeting of creditors.
So far, six candidates have been submitted to the court for rehabilitation plan formulation. They are Mr. Pirapan Salirathavibhaga, Mr. Boontuck Wungcharoen, Mr. Pailin Chuchottaworn, Mr. Piyasvasti Amranand, Mr. ACM Chaiyapruk Didyasarin (THAI Chairman), and Mr. Chakkrit Parapuntakul (THAI Second Vice-Chairman and Acting President).
But Mr. Pailin may tender his resignation as THAI board member and refusethe candidacy. That's because Mr. Pailin ever served as Thai deputy transport minister, and according to the regulations of the Office of the National Anti-Corruption Commission (NCC), he was not allowed to resume related posts in two years that followed. Moreover, Mr. Pailin also ever supervised THAI. For these reasons, there may be some legal issues over his candidacy. Therefore, he is ready to be replaced at any time. When THAI completes privatization reform, regulations on state-owned enterprises will have no binding effect on this former national flag carrier any more.
Submitting a candidate list together with THAI rehabilitation plan is only going through related legal procedures, and candidates on the list are not official. That means the list is still subject to any necessary changes in the period.
Source: InfoQuest, by Phana / Tanawat / Rachada, translated by Xinhua Silk Road.
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