Thai Air to get $2.3bn aid from government

Bloomberg

Thai Airways International Pcl will receive key financial support from the government for its 80 billion baht ($2.3 billion) capital raising and debt-to-equity swap plan aimed at helping the state-controlled carrier come out of its pandemic-induced bankruptcy.
State-owned banks will lead in funding new loans, converting debt and injecting equity capital into Thai Air as part of a revised revamp plan the airline gave the court for approval last month, Finance Minister Arkhom Termpittayapaisith said in an interview with Bloomberg News.
The ministry and other agencies will continue to maintain a combined stake of at least 40%, but the proportion won’t exceed 50% to induce the carrier to stay competitive, he added.
The carrier expects to emerge from its court-monitored debt-restructuring plan by 2024. It filed for bankruptcy protection in 2020, having posted losses every year from 2013. But a rebound in global air travel has boosted its cash flow and reduced the amount of loans that was specified by in the court’s original plan.
“The situation in Thai Airways is much better,” and that has boosted creditors’ and shareholders’ confidence in its survival and future, said Arkhom”, he said.