ARC NEWS
Nok Air granted one-month deferral to submit rehabilitation plan
March 16, 2021
Nok Air has been granted approval from Thailand's Central Bankruptcy Court for a one-month extension to submit its rehabilitation plan. "The Central Bankruptcy Court has considered and issued an order approving the extension of the submission period of the rehabilitation plan to 15 April," the airline said in a 15 March disclosure to the Stock Exchange of Thailand. The Thai low-cost airline stated that its rehabilitation planners had on 10 March applied for the extension from the previous deadline of 15 March, in accordance with Thailand's Bankruptcy Act. Nok Air says it needs the extension due to "several important aspects which required the all-aspect analysis, consideration and formulation of the debt structure, capital structure, and organisational structure". It states: "This is in addition to legal issues and contractual obligations with employees, business partners, and debtors; as well as in conjunction with financial estimates, capacity for debt repayment and future business plans. "The production of the rehabilitation plan is therefore highly important, requires consideration [and] detailed analysis to result in a just outcome for all creditors, and discussion with creditors and all interested parties in the draft rehabilitation plan in accordance with various principles to [ensure] the rehabilitation plan will receive the approval of the creditors’ meeting." Once the plan has been submitted, the official receiver is due to hold a creditors' meeting to consider the rehabilitation plan. The Central Bankruptcy Court, if satisfied with the plan, will issue an order approving the plan and appointing plan administrators, with Nok Air to proceed to implement the rehabilitation plan and provide updates on the rehabilitation progress. Under Section 90/43 of Thailand's Bankruptcy Act, the court may grant an extension on "not more than two occasions and for a period not exceeding one month for each occasion", according to an unofficial translation of the act by Thailand's Office of the Council of State. Compatriot airline Thai Airways International, which is also undergoing business rehabilitation and has already submitted its plan to the court, availed itself of both one-month extensions. It extended its submission deadline from January to February, then February to March. Last year, the Central Bankruptcy Court accepted Nok's application for business rehabilitation on 30 July. It then approved Nok for the process on 4 November, appointing the airline's chief executive Wutthiphum Jurangkool – plus four other individuals, and Grant Thornton Special Advisory Services – to prepare the restructuring plan. They were given a three-month deadline from 15 December to submit the plan by 15 March.


Berlin airport requests partial debt relief to overcome crisis
March 15, 2021
Berlin's airport operator Flughafen Berlin Brandenburg plans to ask its state owners to provide €1.9 billion ($2.3 billion) for partial debt relief and additional liquidity in an effort to return the company to financial stability. Under a business plan approved by its supervisory board on 12 March, the operator has proposed that its shareholders – the regional states of Berlin and Brandenburg, and federal republic – will provide €1.1 billion for debt relief and €800 million in liquidity support from 2022 until 2026, FBB says. It adds that the restructuring proposal is based on an assumption that previously approved government financial aid to support the airport for Covid-related losses in 2020 and 2021 will be "entirely converted" into grants. FBB cites similar measures for other heavily affected sectors as the basis for that assumption. After the pandemic's onset in 2020, FBB received €300 million as part of a government fund to support businesses amid the coronavirus crisis. Later in November, the operator said that it would require more than €550 million in additional funding for 2021 if air traffic does not rise significantly above 2020's level. The troubled airport, which finally opened in October after years of delay, predicts "significant revenue losses" over coming years because of the traffic decline, and does not foresee traffic recovering to pre-crisis level before 2025. For the current year, the operator predicts 10.7 million passengers – 30% of the total number handled by the German capital's former Tegel and Schonefeld airports in 2019. FBB says that it will clarify questions surrounding the state aid proposal with the European Union, while efforts to minimise airport operating costs will be "intensified" and only "absolutely necessary" investments will be made. Supervisory board chairman Rainer Bretschneider describes the proposal as a "good orientation" to gradually lead the airport out of the crisis. "Like all companies that are as badly affected by corona as we are, we have to think in long lines," he states.


Singapore and Australia plan travel bubble
March 15, 2021
Singapore is looking to re-establish air connectivity with Australia, and this includes plans for a quarantine-free air travel bubble. "Singapore is currently in discussions with Australia on the mutual recognition of vaccination certificates and resumption of travel with priority for students and business travellers," Singapore's Ministry of Foreign Affairs (MFA) said in a 14 March statement that addresses a same-day Sydney Morning Herald report on the matter. "We are also discussing the possibility of an air travel bubble which will allow residents of Singapore and Australia to travel between both countries without the need for quarantine." MFA's statement indicates that Australia is a key partner of Singapore in the region and thus far, both nations have been able to handle the Covid-19 situation. The ministry did not set any timeframe for the discussions and responded to suggestions in the article about the broader implications of Singapore and Australia's arrangement, if it materialises. The ministry states: "We are not in discussion on the concept of a quarantine centre or vaccination hub. Australian nationals can transit via Singapore without quarantining to return home if they travel on approved transit routes and if they comply with our public health protocols while in transit." The Sydney Morning Herald article cited by MFA states: "New Zealand could also be involved in what would become a three-way travel bubble that [Australia's] federal government sources are hopeful will be up and running by July or August – well before a mooted broader opening of [Australia's] international borders from October." The article also states: "It could also be possible for people from third countries to enter Australia via Singapore after completing two weeks’ quarantine in the city-state."


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