Vol 23 (2026) - Issue 1

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Overview of Thai Business Reorganisation Proceedings under the Thai Bankruptcy Act

Summary
This article provides an overview of Thailand's business reorganisation regime under the Thai Bankruptcy Act, focusing on the legal framework, procedural safeguards, and recent judicial trends. Introduced in response to the 1997 financial crisis, Thailand's regime is designed to allow financially distressed companies to restructure under court supervision while ensuring fairness to creditors. A central feature is the automatic
stay, which halts creditor action upon the court's acceptance of a reorganisation petition. However, recent Supreme Court rulings highlight a more stringent judicial approach, with increased scrutiny of petitions and reorganisation plans. The court now demands evidence of good faith, accuracy in financial disclosures, and fairness in creditor treatment. As judicial discretion intensifies, the article underscores the importance of meticulous preparation and compliance to avoid dismissal or failure of reorganisation. In-court proceedings remain a viable restructuring tool, but only
for companies that are well-prepared and transparent throughout the process.