Thai Airways International’s board of directors approved the Bt10 billion capital increase, which needs shareholders’ approval at the April 28 meeting.
THAI President Piyasvasti Amranand said that proceeds from the share offering will be used for general corporate purposes, including to manage its liquidity, finance future aircraft investments, strengthen THAI’s capital base, and repay its debts. (Nation)
And then a few days later:
Thai Airways International must raise Bt50 billion this year and next to repay debts and finance business expansion, president Piyasvasti Amranand said yesterday.
Funding will come from a share offering planned for later this year, bank loans and debenture issues.
Once the debt-to-equity ratio is halved from 4 at present, whatever is left over will be used for business expansion. [...]
THAI recently won board approval to issue up to 1 billion shares, pending shareholder approval on April 28. The airline is now capitalised at Bt16.99 billion. [...]
THAI is due to retire Bt29 billion worth of debts this year. Earlier, it was reported that debentures worth no more than Bt11 billion would be issued, to roll over maturing bonds. (Nation)
10 billions ? 50 billions ? Different tools but only one reality : Thai Airways needs money. Badly.
Not to expand the business (“whatever left…” like says the president) put to face its obligations : to roll over debts.
Healthy ? Of course not.
And don’t be fooled by the so called return to profit in 2009… It’s an illusion. Most of the airlines in the world are badly hurt.
Apparently, the thai government (as main shareholder) has accepted to pay. The thai tax payers will pay.
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