A wave of 3368.75% spiked Thai Airways (OTC: TAWNF) stock at its previous close, soaring to $5.5500. Against the 30-day Average Volume of 99.46K, the Thai Airways stock recorded a Volume of 1.64M. Within the last 52 weeks, the TAWNF stock values ranged from $0.0800 up to $5.9500. Following the news of debt claims exceeding $7 billion being challenged by the TAWNF, the surge continued.
The operations of Thai Airways, together with its subsidiaries, ranging from airline and travel services. The company operates three business segments including Business Units, Transportation Activities, and Other Activities. There are three segments under this segment: passenger, freight, and mail. Commercial cargo and mail, ground customer, ground handling and equipment, and catering services are all included in the Business Units segment. Transportation support activities fall within this segment, which includes dispatch operators, sales agents on board, THAI shops, and technical services.
Several aircraft lessors and engine provider Rolls-Royce Holdings Plc claim that Thai Airways is liable by law for $7.4 billion in claims incurred after the airline obtained bankruptcy protection, but the airline has been challenging those claims, as reported Bloomberg on last Thursday.
Thailand’s major carrier is being forced to undergo a court-supervised restructuring to trim its debt and return to profitability through increased financing. It is contesting almost two billion baht ($6.3 billion) in claims from 48 lessors, including BOC Aviation Ltd. and SMBC Aviation Capital Ltd.
According to a copy of the debt rehabilitation plan seen by Bloomberg, the debt also includes another 33 billion baht owed by Rolls-Royce for maintenance services. An official at Thai Airways declined to comment. In Europe, Rolls-Royce also declined comment, as did BOC Aviation and SMBC Aviation.
A settlement with creditors is vital if TAWNF is to avoid bankruptcy. However, the amount at issue is more than half of Thai Airways’ total liabilities of 410 billion baht.
As said TAWNF’s acting president Chansin Treenuchagron that in order for the Thai Airline to resume its scheduled commercial flights and pay for one-time employee separation costs, it will need 30 billion baht by the middle of this year.