Chandler MHM


Navigating the Recent Developments of the Thai Bankruptcy Legal Framework

2023 is anticipated to be a turbulent atmosphere for businesses as a result of the shifting macroeconomic environment, which will be exacerbated by the disruption of global supply chains caused by the exposure of issues concealed by the COVID-19 pandemic and crypto winter, causing businesses being unable to manage their finances and make debt payments. Nonetheless, it seems that the Thai Bankruptcy Act B.E. 2483, the main legislation for the rehabilitation framework in Thailand, has not fully and efficiently served key purposes of rehabilitation, amongst other things, expediency and facilitating specific needs for Small and Medium-sized Enterprises (SMEs). In reality, only a few SME business rehabilitation cases have been filed with the court, and the report indicated that this contributed to the restriction and limitation of the in-place business rehabilitation process for SMEs. The results reflect that Thai lawmakers have been attempting to reform the Thai rehabilitation law to deal with the causes of those problems.