Restructuring and insolvency—Thailand—Q&A guide
Restructuring and insolvency—Thailand—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Thailand—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Thailand published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: Weerawong, Chinnavat & Partners Ltd—Natthida Pranutnorapal; Suntus Kirdsinsap; Thanawan Kirdsinsap

1. What main legislation is applicable to insolvencies and reorganisations?

In Thailand, the Bankruptcy Act BE 2483 (AD 1940) as amended (the BA) is the main law governing bankruptcy and reorganisation matters. Bankruptcy and reorganisation procedural matters are covered by the BA, the Establishment of and Procedures for Bankruptcy Court Act BE 2542 (AD 1999) (the EPB), and the Regulations for Bankruptcy Cases BE 2549 (AD 2006).

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

Bankruptcy

According to section 7 of the BA, the court may order that an insolvent debtor be declared bankrupt if the debtor is domiciled in Thailand or has operated its business in Thailand within one year prior to the date that a bankruptcy case is filed with the court.

Section 9 of the BA specifies that a creditor can file a bankruptcy case against a debtor if certain conditions are met. One of the conditions is that a juristic person is required to have indebtedness owing to one or more creditors of not less

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