Thai Airways International Public Company Limited (SET: THAI) announced on Wednesday the measures and timeline for resolving the grounds for possible delisting after a notice from the Stock Exchange of Thailand (SET).
On 8 March 2022, the Stock Exchange of Thailand notified THAI that it is subject to possible delisting in stage 2 (NC stage 2) because the shareholders’ equity became less than zero. In this regard, THAI has clarified that it is currently under the process of business reorganization under the Bankruptcy Act B.E. 2483. The measures can be summarized as follows:
1. Measures to make the shareholders’ equity become greater than zero
THAI has a capital and debt restructuring plan to resume its business operation efficiently and sustainably. Primarily, a capital increase is expected and the option of debt-to-equity conversion will be offered to the creditors under the business reorganization plan to increase the shareholders’ equity and decrease debts. Currently, the debt restructuring plan is being considered to support the option of debt-to-equity conversion and the issuance and offer of newly increased shares to benefit all parties, i.e. THAI – which is undergoing the process of business reorganization, the creditors under the business reorganization plan – which can choose the option of debt-to-equity conversion as a form of debt repayment under the business reorganization plan, the existing shareholders of THAI, and all relevant parties.
2. Measures to generate net profit from normal business operation based on its main business
In the past year, THAI has issued several measures and vigorously taken actions to achieve its target to reform its business by focusing on generating revenue from aviation business and creating other additional revenues such as opening restaurant with Royal Orchid dining experience, creating THAI Airways products from aircraft parts, and opening Flight Simulator experience. THAI has also prepared to compete in the aviation industry once the COVID-19 situation positively improves, and transformed its business by executive over 400 projects of Transformation Initiatives, of which 80 percent of all projects have successfully progressed.
3. Timeframe
According to its financial estimation, THAI expects to generate at least THB10 million of profits from its main business operation in 2023, and the shareholders’ equity will become greater than zero in 2024. Based on the SET’s regulations on the Delisting of Listed Company and the guidelines of the SET which require THAI to eliminate the grounds of possible delisting within 3 years, it can be seen that THAI might not be able to fully eliminate that because the shareholders’ equity may remain less than zero. In that case, THAI will submit an application in advance to extend the period for another 1 year.
