But is it Ch. 3/1, Ch. 11 or Ch. 15?
Interesting commentary on the use of US bankruptcy proceedings by foreign companies.
https://bit.ly/2XwthpN
THAI has now filed a rehabilitation petition with the Central Bankruptcy Court in Bangkok with a hearing scheduled for 27 May.
https://bit.ly/3d5LmBx
The Thai Government has indicated it may use both US and Thai proceedings for THAI.
https://bit.ly/3d4xR5j
Foreign companies can, in certain circumstances, file in the US. LATAM Airlines, Latin America's largest airline, filed for Ch. 11 bankruptcy in the US on 26 May.
https://bit.ly/3gnVUya
Filing in the US by THAI would be a defensive move to protect against asset seizures outside Thailand. It seems that the primary filing will occur in Thailand with ancillary proceedings (if needed) brought in the US under Ch. 15
Given the added complexity of dual filings, query whether a form of standstill agreement with the aircraft lessors and other foreign creditors would effectively deal with any offshore seizure risk. This is the approach adopted by the Virgin Australia administrators.
https://bit.ly/2ZEzbbg
UPDATE: The Central Bankruptcy Court issued an order on 27 May accepting a petition for business rehabilitation of Thai Airways International PCL and has scheduled an investigation on 17 August 2020 at 9:00am
May 2020
© PELEN 2020
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