Corporate rehabilitation proceedings were introduced in 1999 in the Bankruptcy Act, B.E. 2483 (1940) as amended, as a result of the Asian financial crisis in 1997 and 1998. Rehabilitation proceedings are court-supervised attempts to rescue debtors from insolvency by offering several mechanisms to resolve their financial distress through restructuring their liabilities and assets. Successful restructuring proceedings result in the restoration of normal company operations and solvency, while also providing protection to some of the interests of a company’s creditors. Creditors’ interests include repayment of debt owed by a company to its creditors.

The COVID-19 pandemic and resulting global economic slowdown have resulted in an increase in financially distressed companies in Thailand opting for rehabilitation proceedings, as opposed to bankruptcy, to solve their respective financial and operational problems. This chapter will provide an overview of the rehabilitation proceedings in Thailand.