Source: Reuters Author: Pisit Changplayngam, Khettiya Jittapong 01/25/2010
Subject Concerned: Government Airlines
Thai Airways International said on Jan. 25 its board had agreed in principle to restructure up to 20 billion baht (US$606 million) in debt in a plan involving a bond issue and other capital-raising.
Chairman Ampon Kittiampon told reporters the airline planned to restructure short-term debt for long-term debt and that a draft of the capital-raising plan would be ready in March-April.
The airline, which is in the process of overhauling operations and restructuring management, had announced a plan in October to issue new shares in 2010 to raise funds to repay short-term debt.
Phatra Securities is its financial adviser for the capital-raising plan.
The airline said this month its plan to raise capital would be completed later than expected, by the second quarter of this year, as it was reviewing options after its performance improved.
It has said the fund-raising is subject to approval by the Finance Ministry, which has a 51 percent stake in the airline.
Analysts expect the national carrier will need to raise at least US$600 million.
At the midday break, Thai Airways shares were down 1 percent at 18 baht, while the overall market was 1.4 percent lower.