Thai Airways loses state enterprise status after stake sell-off
Thai Airways International (THAI) has lost its state enterprise status after the Vayupak 1 Fund bought a 3.17 percent stake from the Finance Ministry of Thailand.
A Thai Airways International plane leaves Suvarnabhumi airport. (Bangkok Post file photo)Bangkok (VNA) - Thai Airways International (THAI) has lost its state enterprise status after the Vayupak 1 Fund bought a 3.17 percent stake from the Finance Ministry of Thailand.
The stake purchase was undertaken at a price of four THB per share, a source at the fund said. The purchase cut the Finance Ministry's holding in the national carrier to 48 pertcent, immediately stripping the carrier of its state enterprise status.
The Vayupak 1 Fund has the status of a juristic person, not a state enterprise, even though it was established by a 2003 cabinet resolution, said the source.
A source at the Finance Ministry said the airline will now submit its application to the Central Bankruptcy Court for rehabilitation under the bankruptcy law, with THAI proposing itself as the rehab planner.
That process needs to be done as soon as possible, otherwise creditors may submit themselves to the court as planners, said the source.
Meanwhile, the Finance and Transport ministries will jointly set up a "superboard," a new panel to monitor the rehabilitation plan for the carrier.
The board will be chaired by Deputy Prime Minister Wissanu Krea-ngam, who oversees the government's legal affairs.
Once among the state-owned enterprises gaining profits in Thailand, THAI now has outstanding debts worth 200 billion THB (6.2 billion USD), 30 percent of which is domestically owned. The national flag carrier reported a net loss of 2.11 billion THB in 2017, and this figure increased to 11.6 billion THB in 2018 and 12 billion THB in 2019. Due to the impact of the COVID-19 pandemic, THAI has been forced to cease operations until the end of May./.
You should also see
Vietnam becomes biggest rice supplier for Singapore
Vietnam has for the first time surpassed India and Thailand to become the largest rice exporter to Singapore by shipping 36.15 million SGD (26.55 million USD) worth of rice in the first three months of this year, an increase of 80.46% over the same period in 2023, winning 32.03% of the market share, according to the Vietnam Trade Office in Singapore.
See more
World
Indonesia’s Mount Ruang continues to emit ash
After a series of eruptions earlier this week that forced thousands to evacuate, Mount Ruang in North Sulawesi, Indonesia, continued to emit ash on April 19 afternoon.
World
Thailand gives financial support to Laos for road maintenance
The Thai cabinet has approved 1.8 billion THB (about 48.8 million USD) in financial assistance for the Lao Government to maintain and improve Highway R12, shortening the travel time from Thailand’s Nakhon Phanom province, through Laos, to the Vietnamese border in central Quang Binh province.
World
Indonesia develops sustainable tourism
Indonesia has been working to realise its goal of building a quality, sustainable and environmentally friendly tourism industry.
World
Vietnam to have many opportunities from digitalisation, green transformation: IMF
The International Monetary Fund (IMF) has forecasted that Vietnam will have many opportunities from digitalisation and green transformation, according to IMF Asia and Pacific Department Director Krishna Srinivasan.
World
Thailand’s EV sales forecast to miss target
Electric vehicle (EV) sales in Thailand may fail to reach the estimate of 130,000 units this year as prices are likely to keep changing, according to Hyundai Mobility Thailand.
