by BLOOMBERG

BANGKOK • Asia Aviation pcl, which controls Thailand’s biggest budget carrier, is seeking a new loan and listing of the airline unit in an overhaul as the coronavirus situation hurts the nation’s travel industry.

The airline is restructuring its business to make it attractive for investments as Thailand is experiencing a worsening outbreak of Covid-19, Asia Aviation said in a stock exchange filing.

The company hasn’t received any support from financial institutions nor pandemic-relief loans from the government, it said.

Asia Aviation is seeking a loan of as much as 3.15 billion baht (RM410 million) to increase the company’s liquidity and will liquidate its operation and delist its stock from the Thai exchange. It will then distribute its entire 55% stake in Thai AirAsia Co Ltd, a venture between Asia Aviation and Malaysia’s AirAsia Group Bhd, to shareholders and list the stock on the local bourse.

This new listing “will increase opportunities for Thai AirAsia to raise funds by itself rather than being dependent on the company for fundraising”, Asia Aviation said in the statement.

The liquidation and delisting are subject to Securities and Exchange Commission approval, the filing said.