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The Ministry of Justice has proposed to the government to form a committee to consider the amendment of bankruptcy law.
Concept and history
Since Thailand faced an economic crisis in B.E.2540, causing severe liquidity disruption and insolvency on a plethora of certain types of business that further cause a domino effect of insolvency on some competing businesses.
The payment of debt under the bankruptcy law is not the best way to guarantee the creditor and debtor full repayment and new business respectively. Therefore, the concept of reorganization of the debtor’s business is the goal for solving insolvency and bankruptcy of the debtor.
The Ministry of Justice has proposed to the government to form a committee to consider the amendment of bankruptcy law. As a result, the Bankruptcy Act (No. 4) B.E. 2541 is enacted. It added Part 3/1 on the proceeding of reorganization of the debtor’s business in section 90/1 to 90/90. They contain the principle of business reorganization of a debtor, who is a juristic person facing difficulties of temporary financial illiquidity, which deserves help with an opportunity to have their business reorganized. This in return, increases the opportunity that the creditor will be repaid.
Person eligible for reorganization
Under section 90/1 which states that debtor is a debtor that is a private company limited, public company limited or other types of juristic person in pursuant to a ministerial regulation. Currently, the ministerial regulation prescribes that the Credit Union Co-operative to be considered as a juristic person as well.
Person eligible to call for reorganization
Noted that the creditor of a debtor under 3, 4, 5, or 6, or the debtor, could file a request to the court by himself upon the consent in writing from the Bank of Thailand, Security Exchange Commission, Office of Insurance Commission or government agencies under 6, whichever case.
Requirement of filing a reorganization request
Exemption of filing a reorganization request
Government agency involved
The Central Court of Bankruptcy, the Government Complex Commemorating His Majesty, Building A, Floor 2-4, Chaengwattana Road, Laksi, Bangkok
Role of MVP
We can advise on laws in relation to reorganization, and represent you in the proceeding of filling a reorganization request to its completion.