THAI Clarifies on the Default, Revealing CIMBT and Islamic Bank as Major Creditors
THAI Clarifies on the Default, Revealing CIMBT and Islamic Bank as Major Creditors.
THAI Clarifies on the Default, Revealing CIMBT and Islamic Bank as Major Creditors.
23 ก.ค. 2563

Thai Airways International Public Company Limited (THAI) has made further clarification on the event of default in regard to the receipt of financial assistance which is one of the reasons why the company has filed the rehabilitation petition, and the Central Bankruptcy Court has issued an order to accept the rehabilitation of the company for consideration on May 27, 2020.
 
As for the default of repayment of debts in regard to the receipt of financial assistance, on May 18, 2020, CIMB Thai Bank Public Company Limited (CIMBT) issued a letter refusing the company’s request to extend the maturity date (which was on May 26, 2020) of the short-term credit facilities in the type of promissory notes in the amount of THB 1,000,000,000. On May 27, 2020, CIMBT issued a letter to notify THAI of the breach of the agreement and to request the company to repay all debts and to declare the intention to offset the debts because the company was in a default of the last instalment of debt repayment which became due on May 26, 2020, with the principal and interest to be paid to CIMBT of THB1,001,526,512.57 in total.
 
In the meantime, on May 18, 2020, Islamic Bank of Thailand issued a letter refusing THAI’s request to consider extending the maturity date of the principal amount of the promissory notes in the amount of THB 500,000,000 for at least 12 months and requested that the company repay the debts under the promissory notes together with the profits in the amount of THB 500,602,739.73 by May 22, 2020.
 
Also, on May 22, 2020, the Public Debt Management Office under the Ministry of Finance issued a letter requesting that the company repay the debts which the Ministry of Finance on-lent to THAI by June 15, 2020. The debts comprised of the principal amount, the outstanding interests and the outstanding on-lend fees. This is due to the cessation of the status of the company from being a state enterprise. As of May 22, 2020, THAI had an outstanding loan principal of 335,416,347.18 Euros or approximately THB 11,958,699,651.
 
Moreover, apart from the debts under the juristic acts in relation to the receipt of financial assistance as mentioned above, THAI also received letters demanding repayment of debts and letters notifying the default of payment by other creditors who are business partners of the company in which the company is unable to make repayment. Consequently, the company submitted a petition to the Central Bankruptcy Court to propose for the rehabilitation plan under the Bankruptcy Act.
 
Further information on the default of repayment of debts in regard to debt instruments issuance. https://www.set.or.th/dat/news/202007/20082179.pdf