You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 8, 2024

Business Rehabilitation Proceedings in Thailand

The primary goal of business rehabilitation proceedings in Thailand is to provide debtors who are facing insolvency with various mechanisms to address their financial difficulties. This includes restructuring their liabilities and assets while also ensuring that creditors receive repayment equal to or greater than the amount they would have received if the debtor had been declared bankrupt by the court.

Rehabilitation proceedings are governed by the Act on the Establishment of and Procedure for Bankruptcy Court B. E. 2542 and the Bankruptcy Act B.E. 2483. The Civil Procedure Code regulates any matters not governed by these two laws.

In the eyes of the Thai judiciary, rehabilitation proceedings are classified as a type of bankruptcy action—thus, the country’s bankruptcy courts have jurisdiction over rehabilitation matters.

Business Rehabilitation Proceedings in Thailand is a detailed guide to the rehabilitation process for businesses in Thailand. It contains important information for entrepreneurs, creditors, and other stakeholders in businesses in Thailand that are facing challenges and that may be candidates for business rehabilitation.

The full Business Rehabilitation Proceedings in Thailand guide can be downloaded through the button below.

RELATED INSIGHTS​ 

October 7, 2021
The fast and efficient movement of goods is a hallmark of the modern global supply chain. In fact, it is often an expectation, with contractual commitments dependent on the timely and problem-free delivery of goods to the destination country. If unexpected costs or unreasonable delays occur, importers can find themselves liable to customers or beneficiaries, resulting in reduction or even elimination of anticipated revenue. One area of particular importance for importers is the customs clearance and assessment process, which is often one of the last but most critical phases of the global supply chain. Importers, regardless of their experience or sophistication, have a duty to understand and comply with all applicable laws and regulations for the importation and classification of goods sent from other countries. While Thailand, like many countries, is a member of the World Trade Organization (WTO) and is obliged to adhere to WTO guidelines for the valuation and classification of goods. It also has its own regulations, policies, and customs laws that provide a legal framework for customs assessment challenges by importers. Often, importers or their agents can effectively process and clear goods with the assigned customs officials without encountering any issues. However, disputes do inevitably arise, often relating to origin, classification, and duty assessment. If not addressed early, a dispute can escalate, leading to seizure of goods, posts of guarantees, final assessments by customs authorities, and even allegations of civil or criminal wrongdoing. At such an advanced stage, it may be too late to engage in consultation to achieve a dispute settlement. Instead of risking such a predicament, importers seeking to resolve disputes with customs officials should explore pre-assessment consultation opportunities. At this stage, there remains flexibility in approach and time to consult with customs officials, make submissions, and consider a flexible settlement. If this
September 30, 2021
A liquidated damages clause is a quick and straightforward way to determine the amount of compensation payable by a breaching party to the aggrieved party in the event of IP infringement or another contract violation. The enforceability of such a clause in Vietnam remains a controversial topic, but some recent IP-related cases may shed some light on the applicability of such provision.
September 24, 2021
In response to the Covid-19 crisis, many courts around the world and specifically in Southeast Asia are strengthening their electronic filing systems and shifting to virtual hearings. Vietnam is following this trend and has committed to apply technological solutions to adopt an e-court system. While the Supreme Court of Vietnam established this objective before the outbreak of the pandemic in Directive No. 01/2020/CT-CA dated January 9, 2020, it has just proposed and submitted draft rules on online trials to the National Assembly in late September 2021. The Chairman of the National Assembly of Vietnam is now seeking the opinion and approval of the Politburo of the Central Committee of the Communist Party of Vietnam before presenting the draft rules to the National Assembly for voting in their second meeting of the year in October 2021. If approved, it is expected that it will take some time for the rules on online trials to be adopted and implemented by the Vietnamese court system due to the need to upgrade the technology of the different court levels from the Supreme Court to lower-level courts. Training will also be required, so that judges, secretaries, and individuals working in the judiciary are equipped with sufficient IT knowledge in order to manage the system and hold the virtual court hearings effectively. Amid the pandemic, the need has arisen to proceed with temporarily suspended cases and to resume receiving petitions and other documents, especially in hard-hit areas that have been forced to refrain from opening any court meetings and hearings due to the Covid-19 outbreak. The situation needs to be resolved as soon as possible to effectively bring the cases to trial within the prescribed time limit, protect human rights and the legitimate rights and interests of the parties, stabilize social order and safety, and