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[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN THAILAND]
By considering the facts presumed to be insolvent under these criteria, it is crucial that such facts exist at the time the petition was filed. The person who is eligible to file the SMEs rehabilitation petition with the Court 22 ➢ Creditor (unsecured creditor or secured creditor). ➢ SMEs Debtor. The conditions for filing the petition 23 i. The SMEs Debtor is insolvent ii. The SMEs Debtor is an individual person, group of persons, partnership, or juristic person
the juristic registration of such SMEs Debtor. (3) The Court had dismissed the rehabilitation of such SMEs Debtor within 6 months prior to the filing of new petition. Since the beginning of 2020, the Thai economy has faced many challenges from the COVID-19 pandemic. The broader economy is expected to recover gradually, although some sectors are showing the first signs of recovery. Thailand's economy is expected to gradually recover to its pre-COVID-19 levels. However, the recovery may be uneven, especially for small businesses with limited access to capital. Continued and rising levels of uncertainty have further impacted financial access for affected businesses. Those with outstanding debt also find it more difficult to negotiate a debt restructuring if they have no projections of future income and cash flow. In 2016, the law was amended to make reorganization accessible to SMEs. The debt threshold was reduced, the preparation and approval of plans was simplified, and subject to a shorter implementation period. In August 2021, the Thai Cabinet approved a set of proposals for legislative amendments that could increase the functionality of these procedures, such as increasing the debt threshold up to a maximum of THB 50 million, allowing SMEs not registered as such to use the procedure and to commence reorganization without a prepared plan, and a faster procedure for approval of the reorganization plan. However, such an amendment hasn’t yet come into force.
iii.
The debt is caused by business operation of such Debtor The debt amount is not less than THB 2,000,000 (USD 57,685.94) for individual debtor;
iv.
not less than THB 3,000,000 (USD 86,528.91) for the debtor who is a group of persons, unregistered partnership, registered partnership, limited liability partnership, or other juristic person under the ministerial regulation; or not less than THB 3,000,000 (USD 86,528.91) but not more that 10,000,000 (USD 288,429.70) for limited company debtor. The circumstances preventing the eligible person to file the petition 24 , e.g., (1) The Court issued an absolute receivership order against the SMEs Debtor. (2) The Court or the Registrar has issued an order for the dissolution or revocation of
22 Section 90/93 of the Bankruptcy Act B.E.2483.
24 Section 90/94 of the Bankruptcy Act B.E.2483.
23 Section 90/92 of the Bankruptcy Act B.E.2483.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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