THAI is confident that its capital will turn positive in 2024 and is ready to resume trading on the exchange. faster than the original plan set in 2025 after continued good operating performance and have the ability to make continuous profits At the same time, ready to accelerate new capital Hoping to end corporate rehabilitation Tourism has recovered, hitting new highs, surpassing the 12 billion baht a month. nearby pre-covid pushing cash flow in hand up to 30 billion baht
Mr. Suwattana Sibunruang, interim managing director of Thai Airways International Public Company Limited or THAI, revealed that the company is currently preparing to hire a financial adviser (FA) to implement the new rehabilitation plan. after being approved by the bankruptcy court to make new capital under the debt-for-equity swap process and capital increase from former creditors and existing shareholders in the amount of 2.5 billion baht by 2024, which represents a decrease from the original rehabilitation plan of 50 billion baht
However, urgent new financing in the amount of approximately 12,500 million baht to increase liquidity in the year 2023, the FA will be instrumental in analyzing the entire credit financing plan. Initially, new loans will be procured in the form of Term Loans of no more than 6 years and/or debt instruments with a maturity of no less than 6 years, for an amount not exceeding 12,500 million baht.
In addition, a revolving facility in the amount of not more than 12,500 million baht has also been prepared according to the rehabilitation plan. And they still have to increase the share capital by about 31,500 million shares with the aim of making the capital positive. Stable the financial structure of the company and allow the company’s securities to be able to be traded again on the stock exchange before the 2025 milestone.
The goal is for capital to turn positive in 2024 and for the company’s shares to resume trading on the Thailand Stock Exchange (SET) as soon as possible. This could be faster than the plan set in 2025 because the current trend of operations is going well. Thai Airways continued profitability. which is one of the conditions for a return to negotiations. it must be able to raise capital and has consistently good profitability.”
for a company overview Currently, the number of passengers of the company continues to grow. This is in line with the trend of global tourism which has started to pick up. That the company has resumed service on approximately 70% of routes compared to the period before the outbreak of COVID-19 And the cabin factor has increased to 85%.
Indicate last income, New High, 1.2 billion baht/month nearby before covid
However, from passenger recovery As a result, the current operating income is 12 billion baht per month. Close to normal situation compared to pre-COVID-19 period with operating income of around 1.5 billion baht per month AND counted as income steadily growing since the COVID-19 outbreak With operating income of only 200 million baht per month, Thai Airways started making profits from May ’22, due to the adjustment of operating costs. cost in all parts and still continue to gain but if deducted from the beginning of the year before tourism started to recover Causing overview of Thai Airways operating results at this time still unprofitable But loss is believed to be greatly reduced . We think there will continue to be operating profits next year.
In addition, the recovery of passengers has resulted in an increase in cash flow (Cash Flow) to 30 billion baht, an amount sufficient to run the organization. As a result, Thai Airways did not have the urgency to raise fresh capital. but in any case for the organization to be sustainable and able to exit the recovery plan Thai Airways still needs to proceed with new funding in the amount of 25 billion baht, as detailed in the latest update of the rehabilitation plan.
