Business Rehabilitation is a court administered or by court action to implement for companies who 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 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 with the following conditions:
The debtor, creditor or any recognized government authority have the power to file a petition.
1. There must be 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 group of creditors regardless of the attached conditions.
3. There must be an official status 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 interest on the business and the Court shall accept the petition and proceeds for the due process with a hearing.
2. If approved by the court, it shall issue an order approving the plan and starting the business rehabilitation.
3. There shall be an official announcement on the Royal Gazette.
4. All claimants who are creditors of the business must submit their claims for debt at least one month after the announcement on the gazette.
5. There must be a meeting for approval of the rehabilitation plan.
6. The plan administrator continues 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 brief processes on Business Restructuring.
1. We are assisting 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 will be the receiver.
7. Supervise and monitor the business following guidelines from the plan administrator.
8. Support the debtor to comply with the conditions of the payment structure.
9. Reporting the analysis and conclusion of the implementation plan.