Corporate rehabilitation proceedings were introduced in 1999 in the Bankruptcy Act, B.E. 2483 (1940) as amended because 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, the amount of which must be higher than the case where the court has adjudged the company a bankrupt. In several cases, the repayment amount was equal to 100 percent of principal amount.

In 2022, the economic outlook in Thailand is anticipated to improve, alongside the reopening of borders in the post‐pandemic era. However, the current situation remains dire for many sectors. To solve their individual financial and operational challenges, financially distressed companies in Thailand are increasingly choosing rehabilitation proceedings. This chapter will provide an overview of the rehabilitation proceedings in Thailand.