21 May 2020

Thai Airways loses state enterprise status after stake sell-off, moves to sell Patong-go

Debt-ridden Thai Airways International Plc (THAI) lost its state enterprise status after the Vayupak 1 Fund bought a 3.17% stake from the Finance Ministry. The purchase cut the Finance Ministry's holding in the national carrier to 48%, immediately stripping the carrier of its long-held state enterprise status.

The airline was moving to submit its application to the Central Bankruptcy Court for rehabilitation under the bankruptcy law, with THAI proposing itself as the rehab planner.

THAI had run up outstanding debts amounting to around 200 billion baht, 30% of which was domestically held.

On May 16, the government agreed the airline would go through rehabilitation under the bankruptcy law with the bankruptcy court overseeing the process and a plan administrator appointed the consent of lenders and the debtor. 

By November, THAI was offloading some unused items that were quickly snapped up as the struggling airline worked to restore its battered business. The airline turned to selling deep-fried dough, or patong-go, from its bakery outlets to generate revenue. The patong-go were a hit with customers and the airline planned to franchise the business.

21 May 2020

Thai Airways loses state enterprise status after stake sell-off, moves to sell Patong-go

Debt-ridden Thai Airways International Plc (THAI) lost its state enterprise status after the Vayupak 1 Fund bought a 3.17% stake from the Finance Ministry. The purchase cut the Finance Ministry's holding in the national carrier to 48%, immediately stripping the carrier of its long-held state enterprise status.

The airline was moving to submit its application to the Central Bankruptcy Court for rehabilitation under the bankruptcy law, with THAI proposing itself as the rehab planner.

THAI had run up outstanding debts amounting to around 200 billion baht, 30% of which was domestically held.

On May 16, the government agreed the airline would go through rehabilitation under the bankruptcy law with the bankruptcy court overseeing the process and a plan administrator appointed the consent of lenders and the debtor. 

By November, THAI was offloading some unused items that were quickly snapped up as the struggling airline worked to restore its battered business. The airline turned to selling deep-fried dough, or patong-go, from its bakery outlets to generate revenue. The patong-go were a hit with customers and the airline planned to franchise the business.