96
[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN THAILAND]
2. The conditions for filing the petition Bankruptcy Case For unsecured creditor i. The Debtor is insolvent ii.
Rehabilitation Case
i.
The Debtor is insolvent
ii.
The Debtor is a limited company/public company or any juristic which is specify in ministerial regulations The debt amount is not less than THB 10,000,000 (USD 284,851.60) a reasonable cause and prospect for the reorganisation of the debtor’s business (debtor must not be placed under absolute receivership)
The Debtor is an individual person or juristic person The debt amount is not less than THB 1,000,000 (USD 28,485.16) for individual debtor, or not less than THB 2,000,000 (USD 56,970.32) for corporate debtor.
iii.
iii.
iv.
For secured creditor i.
v. Filing petition in good faith 3. The effect by the Court Order Bankruptcy Case
The Debtor is insolvent
ii.
The Debtor is an individual person or juristic person The secured creditor must not be a person who is prohibited from forcing debt repayment against the debtor's property in excess of their security The secured creditor must refer in the petition that the secured creditor will give up the liens/security 12 for the benefit of all creditors; or the secured creditor must refer the appraisal of the liens/security in the petition, which when deducted from the amount of the debt, the amount of debt repayment would be lack for individual debtor in the amount of not less than THB 1,000,000 or a corporate debtor in the amount of not less than THB 2,000,000.
Upon the Court issues an absolute receivership order against the debtor, only the receiver has the authority to manage the business and collect all assets of the debtor for distribution to the eligible creditors who file their claims for repayment of debt within the time frame as specified by the law. Rehabilitation Case Upon the Court accepting the petition for rehabilitation , the a utomatic stay of the debtor under Section 90/12 shall be applied. 4. The operation when entering the process/ the effect by the Court Order Bankruptcy Case The debtor shall file proposal for a composition in satisfaction of debts in the creditors meeting If there is no Proposal or any Approval for a composition in the meetings, the official receiver has to report to the Court and the Court shall have to order that the debtor is bankrupt.
iii.
iv.
12 Under Thai law, there are 3 major types of security to be granted over assets, i.e., mortgage, pledge, and business security.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
Made with FlippingBook Online newsletter maker