Business Reorganization is a court process by which a petitioner may file a case to the Central Bankruptcy Court for the debtor’s business reorganization under the provisions in the Thailand Bankruptcy Act.
Business Reorganization can take place in the following situations:
1. If the debtor is a Limited Company, a Public Company Limited or any other Juristic Person, as prescribed in the Ministerial Regulations;
2. When the debtor is insolvent;
3. Indebted to a single or multiple creditors, for a fixed amount not less than 10 Million Baht;
4. There are reasonable grounds and prospects to rehabilitate the business;
5. The debtor is not adjudicated by a Court Order for absolute ownership; or
6. The debtor has not received an order from the Court or the Registrar for dissolution of the Juristic Person, or the debtor has not dissolved for any reason whether or not the liquidation of the Juristic Person is completed.
1. A single creditor or multiple creditors owed a fixed amount of not less than 10 Million Baht.
2. The debtor who is insolvent and indebted to a single or multiple creditors for a fixed amount not less than 10 Million Baht.
3. The Bank of Thailand when the debtors are the following:
4. The Securities Exchange Commission and the Stock Exchange of Thailand when the debtors are securities companies.
5. The Insurance Department when the debtor is a Life Insurance Company or Insurance against loss Company.
6. Government Offices with the authority to supervise debtor’s business operations under the Ministerial Regulations.
A petition for Business Reorganization must clearly show:
1. the insolvency of the debtor;
2. list and contact details of all creditors owed an amount of at least 10 Million Baht;
3. reasonable grounds and prospects rehabilitate the business;
4. name and qualifications of the Plan Preparer; and
5. a letter of consent from the Plan Preparer.
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If a creditor is the petitioner,  they must provide the data of other known creditors. In case a debtor is the petitioner, they must attach the list of all existing assets and debts. The list must include the names and addresses of all creditors.
Reference:Â Business Reorganization Office, Legal Execution Department, Ministry of Justice
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