98
[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN THAILAND]
the date of the Court’s order approving the plan. 15 (4) A secured creditor shall not exercise enforcement for payment of the debt against property given as security unless upon permission by the Court receiving the petition. 16 (5) A creditor legally entitled to exercise self- help enforcement for payment of the debt shall not seize or sell the debtor’s property. 17 (6) A public utility provider, e.g., electricity, water, or telephone, shall not suspend services supplied to the debtor. (Unless upon permission by the Court accepting petition). 18 What is the extent of the protection? (e.g., it includes all of the debtor’s assets; Is it limited to several assets for which the debtor may ask for protection? Is it at the court’s discretion to include any asset? etc.) The extent of all debtors’ asset protection is already prescribed by the law. There is no requirement for the debtor to ask the protection from the Court as there is an automatic stay under Section 90/12 as prescribed above, while there is no protection ag ainst the debtor’s assets granted by the Court if the debtor is already placed under absolute receivership order and/or bankruptcy judgment. Does the protection include only the debtor, or may it cover other persons as well (e.g., guarantors)? The protection shall be applied only the debtors, it does not cover to the guarantors in accordance with Section 90/60
“ Section 90/60 The plan approved by the Court binds the creditors who may make applications for repayment of debt in the business reorganization and the creditors who are entitled to repayment of debt in the business reorganization, in accordance with section 90/27. The Court’s order approving the plan does not have any effect of varying liabilities of persons who are the debtor’s partners or bear joint liability together with the debtor or stand surety for or are in the same position as the surety for the debtor, in respect of the debts existing before the date of the Court’s order approving the plan and does not have any effect of rendering such persons to be liable for the debts created under the plan as from the said date unless such persons, with evidence in writing, give consent thereto.” For how long is the protection granted? Until the Court has the order to dismiss rehabilitation order. Which creditors are bound by the protection? It is bound to all creditors who are eligible creditors on the date the Court issues the rehabilitation order. It is worth noting that under the Bankruptcy Act, there are no specific rehabilitation or bankruptcy procedures regarding financial institutions, securities firms, or insurance firms. The Bankruptcy Court applies general corporate insolvency procedures for such entities. Nevertheless, should the debtor’s business be under the supervision of a government agency, i.e., the Office of the Securities and Exchange Commission (SEC) for securities businesses; the Bank of Thailand (BOT) for financial institutions; or the Office of Insurance Commission (OIC) for insurance businesses, it is necessary that the
15 Section 90/12 (5) of the Bankruptcy Act B.E.2483.
17 Section 90/12 (7) of the Bankruptcy Act B.E.2483.
16 Section 90/12 (6) of the Bankruptcy Act B.E.2483.
18 Section 90/12 (11) of the Bankruptcy Act B.E.2483.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
Made with FlippingBook Online newsletter maker