Thai Airways International (TG, Bangkok Suvarnabhumi) has submitted a progress report on the implementation of its ongoing restructuring process, which Thailand’s central bankruptcy court approved in June, and the airline assured that its debts could continue to be paid in accordance with its rehabilitation plan.

Suvadhana Sibunruang, Thai’s acting chief executive, dispatched the progress report covering the period June 15 to September 14 to the Stock Exchange of Thailand at the end of September highlighting a number of factors that had been achieved, first and foremost that the plan’s administrator had managed to meet debt and interest payments to creditors totalling THB1,262,327,771 baht (USD38 million) “and the company did not default according to the plan in any way.”

The company’s registered capital declined from THB26,989,009,500 (USD814 million) to THB21,827,719,170 (USD658 million) by cutting out shares that had not yet been released and sold.

Sibunruang said that Thai Airways had so far renegotiated a total of 20 contracts for aircraft leasing and engine maintenance under a new policy to downsize the fleet. As previously reported, the airline has been increasing the number of aircraft it intends to retire.

According to the ch-aviation fleets advanced module, of the Thai flag carrier's current fleet of 66 aircraft, 22 are leased from ten lessors. Regional subsidiary Thai Smile operates an additional fleet of twenty A320-200s, all of which are leased, from seven lessors.

The airline has also disposed of three “secondary property” assets that the court had already authorised, including shares held in Nok Air (DD, Bangkok Don Mueang) worth THB278,774,585 (USD8.4 million); shares in Bangkok Aviation Fuel Services (BAFS) worth THB2,712,137,625 (USD81.8 million), which had already been sold in January; and a training centre building and land in the Lak Si district of Bangkok sold for THB1,810,000,000 (USD54.5 million) and transferred to the buyer in August.

Thai Airways is meanwhile looking for buyers for unused CFM International CFM56-3C1 engines installed on five B737-400 aircraft, all of which are currently inactive, the ch-aviation fleets advanced module shows.

A meeting of the creditors’ committee last month appointed Teerat Atnavanich as its chairman, and the committee agreed to monitor the ongoing implementation of the restructuring plan by meeting the administrator once a month to discuss progress on further lease contract talks, route rights and network adjustments, the disposal of more secondary property assets, cash and liquidity management, and business reform.

London-listed and Guernsey-registered specialist fund Amedeo Air Four Plus, which acquires, leases, and sells aircraft, released a statement on October 5 to say it expected the Thai Airways rehabilitation process to conclude during November. “Revised lease documentation is in progress,” it said, adding that it “remains committed to reinstating a sustainable dividend policy as soon as practicable and further announcements will be made in due course.” In May, Amedeo suspended its dividends until Thai’s restructuring and a deal with its lenders are complete.