The cabinet acknowledged that Thai Airways is preparing to return to trading on the stock exchange in the fourth quarter of 2024, proposing that the treasury consider converting debt into equity.
Mr. Anucha Burapachaisri Deputy Secretary-General to the Prime Minister for Political Affairs Acting as a spokesman for the Prime Minister's Office, announced that the cabinet meeting acknowledged the progress. Problem Solving Plan Thai Airways International Public Company Limited According to the current operating results for the 1st quarter of 2023, the revenue was 32,106 million baht, the average passenger load of Thai Airways was 84%, the total passenger traffic was 2.19 million Thai Smile Airways. 79.7 percent, the volume of passenger travel is 1.33 million people, the current cash balance as of May 2, 2023, amounting to 45,988 million baht after business reform. Reduce operating costs and increase revenue by 64,400 million baht per year, higher than the target of 58,000 million baht per year.
However, Thai Airways admits that it has not been able to solve the problem of accumulated loss of Thai Smile Airways since 2013 in the amount of 20,012 million baht, the shareholding ratio is negative 18,166 million baht, so Thai Airways gradually accepts the transfer back of Airbus 320 aircraft from leasing. Service 20 aircraft Personnel transfer Thai Smile Airways Become an employee of Thai Airways by an employee of Thai Smile Airways It was not affected in terms of compensation structure, employment conditions and length of service. Thai Airways also adjusted its capital structure. Debt to Equity Conversion and Allocation of Newly Issued Ordinary Shares to Existing Shareholders in Proportion to Shareholding By converting the original principal debt as planned into 4,911 million newly issued ordinary shares at a price of 2.5452 baht per share.
For the conversion of debt into ordinary shares for repayment of the creditor's outstanding principal. Ministry of Finance in the proportion of 100 Of the outstanding principal debt burden, approximately 12,827 million baht, 5,040 million shares, price 2.5452 baht per share, the Cabinet therefore asked the Ministry of Finance to consider exercising the right to purchase newly issued ordinary shares of Thai Airways in order to be able to exit faster business rehabilitation plan to maintain its status as the national airline for submission to the Cabinet for further consideration
As for the debt conversion to new ordinary shares, Group 5 or financial institution creditors who have rights under the contract to transfer the right to receive money from the sale of aircraft), creditors Group 6 (unsecured financial institution creditors) and creditors Group 18- 31 (debenture holder creditor) in the proportion of 24.50 percent of the outstanding principal debt, totaling 25,000 million baht, amounting to 9,822 million shares at a price of 2.5452 baht per share, Thai Airways prepares to convert debt into equity and offer PPO shares in the second quarter. year 2024, resulting in shareholders' equity of 28,685 million baht to be able to return to trading on the stock market within the fourth quarter of 2024.
In addition, the cabinet also asked the Ministry of Transport and the Office. Civil Aviation Authority of Thailand Accelerate the consideration of granting permission to Thai Airways International to accept the procured aircraft. according to the business rehabilitation plan Entered into service in the squadron without delay. after Thai Airways and Thai Smile Airways Request to use aircraft to fly a total of 64 aircraft, with Thai Airways requesting permission to procure additional aircraft by renting 13 aircraft and having aircraft Under procurement according to the aircraft procurement plan for the year 2024-2025, another 9 aircraft
The Prime Minister was satisfied that Thai Airways International Co., Ltd. had made some progress. therefore requesting to expedite solving the problem in order to get back to normal as soon as possible as well as taking care of the staff of Thai Airways and Thai Smile Airways to receive fairness and be able to perform duties with confidence .
Source: Thai News Agency