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[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN THAILAND]
After 3 years from the order’s date, the order might be dismissed under some conditions specified by the law, for example, there is no further asset to be s eized. Rehabilitation Case In case of accepting the rehabilitation plan by the Court, the plan administrator shall operate the implementation of the plan which shall not exceed 5 years. The implementation of the plan shall be extended 2 times which shall not exceed 1 year per each extend. In the Case that, the creditors meeting, and the Court reject the plan, Court will order to dismiss the rehabilitation order, or order the debtor in bankrupt.
According to the Bankruptcy Act, only the receiver who has the authority to manage business or assets of the debtor for the purpose of collecting all the debtor’s asset and sell in the public auction in order to share net amount after deducting expenses and fee to all eligible creditors who file their claim for repayment of debt within the time frame as stipulated in the Bankruptcy Act. Regarding rehabilitation under the Bankruptcy Act, the business of the debtors shall be existed, the Plan preparer has the duty to prepare the rehabilitation plan while the Plan Administrator has the duty to implement the rehabilitation plan. In addition, once the Court orders accepting the rehabilitation petition for further inquiry, there are several protections to the debtor under Section 90/12 of the Bankruptcy Act, e.g., (1) No action or application shall be brought before or filed with the Court for a judgment or an order dissolving the corporate debtor. Should the action or application be brought before or filed with the Court, the Court shall stay the trial of such case. 13 (2) No civil action shall be instituted against the debtor in connection with the debtor’s property and no dispute in which the debtor may be liable or suffer a loss shall be referred to arbitration for a decision. 14 (However, the Creditor could execute a civil action on the joint debtors of his debtor or his debtor's guarantor). (3) A judgment creditor shall not have any execution undertaken against the debtor’s property if the obligation to which the judgment relates arose before
To summarize, the main differences between the Bankruptcy and Rehabilitation are as follows: o the existence of the business of the debtor; o the repayment of debt to the creditors; o the effect of the court’s order; and o the protection granted under the law.
The protection granted to the debtor against its creditors What kind of protection is granted? (e.g., the creditors may not enforce any court decision against the debtor’s assets etc.) In the bankruptcy case, there is no protection for the debtor upon the Court has the order to place the debtor under absolute receivership.
13 Section 90/12 (1) of the Bankruptcy Act B.E.2483.
14 Section 90/12 (4) of the Bankruptcy Act B.E.2483.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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