(Alliance News) - DP Aircraft I Ltd on Tuesday said it is yet to receive any rental payments from Thai Airways.
The aircraft leasing firm is owed USD3.4 million by the carrier and back in May agreed to defer the payment. The Deferred amounts are to be paid back in 12 equal monthly instalments, along with interest, by November 2021.
DP Aircraft said: "The board of DP Aircraft I Ltd notes the recent announcement that the government of Thailand has given its approval to Thai Airways taking the necessary steps to undergo debt rehabilitation proceedings through Thailand's Central Bankruptcy Court, with a view to a restructuring of the airline.
"The process is a protracted one, with a hearing to decide whether Thai Airways may formally enter rehabilitation not being held until August 17."
Until then, DP adds, Thai Airways will enter into discussions with its lenders "to determine how any restructuring might best be effected".
"The company has not as yet received any formal communication from Thai Airways as to whether it will seek to revisit this arrangement in light of the debt rehabilitation proceedings, but as a matter of Thai law the instigation of the proceedings triggers a moratorium which potentially impacts Thai Airways's debt obligations, and hence the rights of its creditors.
"The board notes that no monies have been received by the company from Thai Airways in respect of its most recent rental instalment, due May 29. The board is therefore expediting negotiations with both Thai Airways and the company's lending banks in order to ascertain the basis upon which the leasing arrangements might most practicably be structured going forwards."
DP Aircraft shares closed 7.1% lower at USD0.13 each in London on Tuesday.
By Eric Cunha; ericcunha@alliancenews.com
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Dp Aircraft I (DPA)