Business Reorganization is a legal rehabilitation process under the Thailand Bankruptcy Act whereby an eligible petitioner files a petition with the Central Bankruptcy Court to reorganize the debtor’s business and restore its financial stability instead of proceeding directly to liquidation.
The objective of Business Reorganization is to enable financially distressed businesses to continue operations, restructure debts, and improve their prospects of recovery.
Business Reorganization may be initiated when the following conditions are met:
The following parties may file a petition for Business Reorganization:
A single creditor or multiple creditors may jointly file a petition if the debtor owes a fixed amount of not less than THB 10 million.
The debtor may file a petition if it is insolvent or unable to pay debts as they become due and owes creditors not less than THB 10 million.
The Bank of Thailand may file a petition when the debtor is:
These authorities may file a petition when the debtor operates as a securities business.
The OIC may file a petition when the debtor is:
Government agencies with supervisory authority over specific business sectors may file petitions where permitted under Ministerial Regulations.
A Business Reorganization petition must clearly provide the following:
If the creditor files the petition, information regarding other known creditors should also be provided.
If the debtor files the petition, the debtor must submit:
Creditors whose debts arose before the Court issues the Reorganization Order may participate in proceedings and exercise voting rights.
Creditors may:
Creditors intending to participate in the meeting should submit the required forms and supporting documents to the Official Receiver before the scheduled meeting date.
Where a representative is appointed, a valid Power of Attorney must be submitted.
All copies of evidence should be certified as true copies.
After the Court appoints the Plan Preparer, creditors must submit an application for debt repayment to the Official Receiver.
The application should generally be filed within one month from publication of the Court’s appointment order.
The application must include:
If a proxy is appointed, an appropriate Power of Attorney must also be submitted.
Creditors may inspect and object to repayment applications filed by other creditors within 14 days after the closing date for submissions.
The Official Receiver may investigate claims and request additional documents.
If the Official Receiver dismisses the repayment application or allows the claim wholly or partially, the creditor may file an objection with the Court within 14 days from acknowledgment of the order.
Business rehabilitation proceedings involve strict legal procedures, creditor meetings, court filings, and debt restructuring requirements. Seeking professional legal guidance may help businesses assess eligibility and prepare an effective rehabilitation plan.
Contact Magna Carta for assistance regarding Business Reorganization, bankruptcy proceedings, debt restructuring, and corporate rehabilitation matters in Thailand.
Legal Disclaimer: The information provided on this website is for general informational purposes only and does not constitute legal advice. Laws and regulations in Thailand may change, and legal outcomes depend on individual circumstances. Professional legal consultation is recommended before taking any action.
Licensed Attorney-At-Law | Licensed Notarial Services Attorney, The Lawyers Council of Thailand
Legal Counselor, Central Juvenile and Family Court
Specializing in Contracts, Property, Corporate, and Family Matters
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