THAI Holds Off ฿71.6Bn Worth of Debenture Payment after Filing for Rehabilitation!

Thai Airways International Public Company Limited (THAI) had made a statement regarding the issued and offered for sales debt instruments.

 

THAI had entered into a rehabilitation process, and the Central Bankruptcy Court had issued an order to accept the rehabilitation petition of the company for consideration on May 27, 2020. The entry into a rehabilitation process by THAI constituted an event of default under the Terms and Conditions issued by the company.

 

The series issued by THAI are as follows;

THAI Debentures No. 2/2019, Series 1: Due in 2020 with an outstanding amount of 2,035 million baht.

THAI Debentures No. 2/2019, Series 2: Due in 2021 with an outstanding amount of 634 million baht.

THAI Debentures No. 2/2019, Series 3: Due in 2023 with an outstanding amount of 2,453 million baht.

THAI Debentures No. 2/2019, Series 4: Due in 2029 with an outstanding amount of 1,899 million baht.

THAI Debentures No. 2/2019, Series 5: Due in 2034 with an outstanding amount of 1,767 million baht.

 

The debenture holders’ representative had sent a letter to THAI on May 27, 2020, asking the company to immediately repay debts thereunder. Therefore, these debentures had become immediately due and payable.

As THAI is in a rehabilitation process, the company is under an automatic stay and is unable to repay debts under these debentures. This default of payment constitutes an event of default under the Terms and Conditions. Furthermore, the default of payment under the relevant series of debentures may constitute a cross default under the debentures of other series, totaling 41 series with the total outstanding amount of 62,820 million baht.