Corporate And Debt Restructuring In Thailand

Sparked by the devaluation of the Thai Baht in July 1997, Thailand as well as its neighboring Asian countries are presently experiencing one of the worst economic recessions in their histories. Companies struggling to survive are unable to meet their debt obligations, while banks and other financial institutions are experiencing historical levels of non-performing loans. Clearly, the need for corporate restructuring amidst such a scenario is imperative. Thai legislators have been quick to respond to the need by enacting, among other economic laws, the Amendment to the Bankruptcy Act (Chapter 3/1) in 1998 and 1999. Said law provides the legal regime for a court-controlled corporate debt restructuring.