The restructuring focuses on debt-to-equity conversion and rights and sequential offering of newly issued shares to shareholders, employees, and investors, reports the Bangkok Post.
In the second quarter of 2024, THAI and its subsidiaries reported total revenue of B43.9 billion, 17.7% higher than the same period last year.
Net profit was reported at B314 million, lower than the B2bn profit in the second quarter last year.
The high total expenses of B38bn were attributed to a decline in profit, which surged 32.1% from the previous year due to variable costs.
The company expects to submit the registration statement for the sale of securities and its draft prospectus for a capital restructuring to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) next month.
The company will also file a petition with the Central Bankruptcy Court for the cancellation of the business rehabilitation and resume share trading on the SET in the second quarter of 2025.
The definite timeframe for all processes is subject to the company’s proceedings and the consideration of the SEC, the SET, the Central Bankruptcy Court and other relevant authorities.
Before THAI submitted a petition to commence rehabilitation proceedings to the Bankruptcy Court in May 2020, the cabinet ordered the Ministry of Finance to reduce its shareholding in the flag carrier by at least 50%. Consequently, THAI was no longer considered a state enterprise.
This has enabled the company to have flexibility in its management, elevate its competitiveness, effectively transform its business, and undertake actions under the business rehabilitation plan, a source said. The company’s measures include organisational downsizing, fleet and engine commonality, cost reduction, and network expansion, according to the source.