Thailand’s Nok Air extends time to file restructuring plan
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Nok Air has said in a stock market filing that it has been granted an additional month to file its final restructuring plan, with the new deadline falling on May 15, 2021.
“This extension is needed to collect additional information required in order to prepare a complete and comprehensive rehabilitation plan to ensure that it will be appropriate for the airline business during the COVID-19 pandemic situation and will receive the approval at the creditors’ meeting,” the low-cost carrier said.
The airline filed for restructuring in July 2020 and was officially admitted to the procedure on December 15, 2020. According to Thai law, it was initially granted three months to submit a final rehabilitation plan to the Central Bankruptcy Court. It already extended the deadline once, through April 15, 2021. The second extension is also the final one permitted.
Nok Air underlined that in addition to complex and ongoing negotiations, the previous deadline would have fallen during the celebration of the Thai New Year (Songkran).
Questions & Answers
Q.Why does Nok Air require more time to submit its restructuring plan?
Why does Nok Air require more time to submit its restructuring plan?
The airline needs additional time to gather all necessary information. This will help them create a thorough rehabilitation plan suitable for the airline business during the COVID-19 pandemic and secure creditors' approval.
Q.When was Nok Air initially admitted into the restructuring process?
When was Nok Air initially admitted into the restructuring process?
Nok Air was officially admitted into the restructuring procedure on December 15, 2020. This followed their initial filing for restructuring in July of the same year.
Q.Is Nok Air allowed further extensions beyond this new deadline?
Is Nok Air allowed further extensions beyond this new deadline?
No, this is the final extension permitted for Nok Air to submit its plan. The new deadline, May 15, 2021, must be met without further delays.
Q.What factors made the previous deadline difficult for the airline?
What factors made the previous deadline difficult for the airline?
The previous deadline coincided with the celebration of the Thai New Year, Songkran. Also, there were complex and ongoing negotiations that required more time to conclude.
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