Business Rehabilitation is a court administered procedure designated to implement a sustainable plan for companies that are unable to fulfill their financial obligations which impede their maximum functions as a company to transact and operate. Pursuant to the Thai Bankruptcy Act B.E. 2542, the debtor can continue with the claim as soon as the company has a registered plan which provides a return to creditors.
There are several conditions in which a rehabilitation can be done. The debtor, creditor or any recognized government authority have the power to file a petition if:
1. There is a clear and considerable ground to restructure or rehabilitate the business
2. The debtor owes an amount of not less than THB 10,000,000 to one or several creditors regardless of the attached conditions.
3. There is an official status implying that the debtor has been insolvent or unable to pay the debts.
1. Applying for application for Business Rehabilitation shall be filed by any person who has relation with the business, and the Court shall accept the petition and proceed with a hearing.
2. If approved by the court, an order is issued to approve the plan and start the business rehabilitation.
3. There shall be an official announcement in the Goverment Gazette.
4. All claimants who are creditors of the business must submit their claims for debt at least one month after the announcement in the Government Gazette.
5. There must be a meeting for approval of the rehabilitation plan.
6. The plan administrator will continue to administer the business.
7. The court shall order or proceed on cancelation of the business reorganization when it succeeds.
Juslaws & Consult helps clients through these 9 stages of Business Restructuring:
1. Act as an advisor by assisting and evaluating the documents before submission.
2. Develop strategy for negotiation with creditors.
3. Prepare the plan for business reorganization with the debtor.
4. Examine and confirm validity of debt claims by creditors.
5. Assist in negotiations with creditors.
6. Coordinate with a legal advisor and the official that will be appointed as the receiver.
7. Supervise and monitor the business guidelines as established by the plan administrator.
8. Support the debtor in regard of compliance with the conditions of the payment structure.
9. Report the analysis and conclusion of the implementation plan.
