BANGKOK (Reuters) – Thai Airways International PCL (THAI.BK) aims to seek a 58.1 billion baht ($1.80 billion) emergency loan to maintain liquidity and see it through a coronavirus-induced drop in demand, showed a document from the airline detailing its plan.

The proposed bridge loan, guaranteed by the Ministry of Finance, was approved on Wednesday by a committee chaired by Prime Minister Prayuth Chan-ocha and will be put to Cabinet for final approval as early as next week, a person involved in the decision to seek the loan told Reuters.

Thai media has reported the airline was seeking a multi-billion baht loan. The document seen by Reuters reveals the carrier’s detailed plan for the first time.

After the loan, the money-losing national carrier will raise 77.04 billion baht in capital by issuing new shares around November, and use the proceeds to pay off the loan plus interest and maintain liquidity, the document showed.

Thai Airways had no immediate comment when contacted by Reuters. The document’s authenticity was confirmed by two people involved in the decision to seek the loan, who declined to be identified as they were not authorised to speak with media.

Thai Airways was already facing financial trouble before the coronavirus outbreak, having reported losses since 2017.

Reporting by Chayut Setboonsarng and Panu Wongcha-um; Editing by Christopher Cushing

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Kremlin says situation with oil prices not easy, but too early to make assessments

MOSCOW, April 22. /TASS/. The situation with world oil prices is not easy now, but one should not make assessments after one day or one week, Kremlin spokesperson Dmitry Peskov said on Wednesday. When asked if Russia would take any…

Exxon quarterly profit falls 5.2% on weak refining, chemical margins

(Reuters) – Exxon Mobil Corp (XOM.N) reported a 5.2% drop in fourth-quarter profit on Friday, hit by weaker margins in its refining and chemical business. Net income attributable fell to $5.69 billion, or $1.33 per share, in the three months…

Home sales reach a 14-year high in August, with prices hitting a new record

Home sales surged to a 14-year high in August as record low interest rates brought homebuyers out in droves and pushed prices to a new record high. Existing home sales — which includes sales of single-family homes, townhomes, condominiums and…

CORONAVIRUS PANDEMICGlobal trade volume may plummet by one third this year — Lavrov

MOSCOW, May 13. /TASS/. The volume of global trade may plummet by almost one third due to the pandemic, according to experts’ estimations, Russian Foreign Minister Sergey Lavrov said during the opening of the meeting of the foreign ministers of the…