Thai Airways Intl (TAWNF)

[Cheap Stock Investor]

You might want to read up on Thailand bankruptcy Law.

"Where the court has ordered a business reorganization order, but the plan preparer has not yet been appointed, all rights under law of the debtor's shareholders shall terminate, except for the right to receive dividends, and such rights will be vested in the interim executive or the receiver. Where the court has issued an order appointing the plan preparer, the shareholders' rights shall vest in the plan preparer. Those rights will be restored when the court orders the cancellation of the reorganization."

Shares are not canceled. Shareholders only give up rights such as voting rights during the reorganization and get them back after it is completed.

Reorganization is similar to Chapter 11 Bankruptcy except shares are not canceled.

Only if less than 50% of creditors approve reorganization will the company be forced to liquidate (similar to a chapter 7 Bankruptcy) and shares canceled.


Reference: Thailand Bankruptcy Act BE 2483