Thai Airways International Plc is challenging some US$7.4 billion in claims from dozens of aircraft lessors and engine service provider Rolls-Royce Holdings Plc, saying it is not liable for the monies because they concern future expenses and were incurred after the airline received bankruptcy protection from a Bangkok court.
Thailand’s flag carrier, which is undergoing a court-supervised restructuring to trim debt and return to profit by raising fresh capital, is disputing around 192 billion baht ($6.3 billion) claimed by 48 lessors including BOC Aviation Ltd and SMBC Aviation Capital Ltd, and another 33 billion baht that Rolls-Royce says it is owed for maintenance services, according to a copy of the debt rehabilitation plan seen by Bloomberg.
A spokesperson for Thai Airways declined to comment. Representatives from BOC Aviation, and Rolls-Royce and SMBC Aviation in Europe also declined to comment.
The disputed amount is more than half of Thai Airways’ total liabilities of 410 billion baht. Yet an amicable settlement with creditors is key for the airline to stave off bankruptcy.