TL;DR Business rehabilitation in Thailand provides financially distressed companies with court-supervised protection, including a temporary suspension of debt obligations and restructuring plans approved by creditors. SMEs benefit from streamlined procedures, lower debt thresholds, and an automatic stay that halts legal actions, giving businesses much needed time to recover and reorganize.
Introduction :
Due to the ever growing economic challenges happening around the world, business rehabilitation has become an increasingly important option for companies facing financial problems. In 2024, the Thai economy was projected to grow by only 2.5%, significantly below the government’s 5% target. This poor growth was due to things such as factory closures around the country, rising energy costs, and competition from cheap imports. Notably, nearly 2,000 factories shut down between July 2023 and June 2024, resulting in over 51,500 job losses, a trend that appears to be continuing in 2025.
In Thailand, the number of business rehabilitation applications increased to 34 cases in 2023, up from 25 in 2022 . Approximately 50% of these cases involved companies from the hospitality, real estate, and manufacturing sectors. While data for 2024 and 2025 has not yet been officially published, early indications suggest that filings have remained increased as more companies seek to navigate economic uncertainty through legal restructuring.
The legal framework relating to business rehabilitation in Thailand is governed by two statutes: the Bankruptcy Act B.E. 2483 (1940) and the Act on the Establishment of and Procedure for Bankruptcy Court B.E. 2542 (1999). Under these laws, business rehabilitation proceedings are categorized as bankruptcy actions, placing jurisdiction with the country’s specialized bankruptcy courts.
Points clés
- Only specific entities are eligible for rehabilitation, including limited companies and public companies, with a minimum debt of 10 million Thai Baht and reasonable prospects for successful rehabilitation.
- A rehabilitation planner is appointed to develop a comprehensive plan within three months, which must outline strategies for debt restructuring, operational improvements, and financial recovery, subject to creditor and court approval.
- The process includes an automatic stay that protects the debtor by suspending legal actions, preventing new lawsuits, and restricting asset disposal, creating a stable environment for potential business recovery.
- Special provisions exist for small and medium-sized enterprises (SMEs), offering a more accessible rehabilitation process with lower debt thresholds, simplified petition requirements, and potentially more flexible management control during the rehabilitation period.
Business Rehabilitation Requirements in Thailand
The business rehabilitation process in Thailand begins with determining whether the company is actually eligible for business rehabilitation.
Not all businesses in Thailand are eligible to enter the rehabilitation process. The Bankruptcy Act B.E. 2483 specifies that only certain types of entities can file for rehabilitation:
- Limited companies
- Public companies
- Other juristic persons as specified by ministerial regulations
Eligibility for SMEs in Thailand
Amendments to Thailand’s Bankruptcy Act have introduced new provisions to make business rehabilitation easier for small and medium-sized enterprises (SMEs).
Previously, only limited and public limited companies with debts of at least THB 10 million could access rehabilitation, which excluded most SMEs. However, under the new provisions the eligibility requirements are available to a wider range of entities, including natural persons, unregistered and registered partnerships, and private limited companies.
The minimum debt thresholds have also been lowered to the following:
- natural persons must have at least THB 2 million in debt,
- private limited companies must have at least THB 3 million in debt, with the max limit for SMEs set at THB 10 million.
SMEs are also no longer required to be registered with the Office of Small and Medium Enterprise Promotion (OSMEP) to qualify for rehabilitation. The rehabilitation process has also been made a lot easier for SMEs now as well.
For example, SMEs are not required to prepare a detailed rehabilitation plan before submitting a petition, and certain steps, such as appointing a plan preparer and holding creditor meetings have been made quicker and easier for SMEs.
If creditors holding at least two-thirds of the debt approve a prepackaged plan, SMEs can request an accelerated rehabilitation process. Once a petition is accepted by the court, an automatic stay is imposed to protect the SME’s assets and allow continued operations, including the ability to apply for new loans.
Additionally, the rehabilitation plan period may be extended from three to five years, giving SMEs more time to restructure and repay debts.
Starting the Rehabilitation Process
Before a company can begin the rehabilitation process, it must first meet specific legal conditions. Filing a rehabilitation petition is the first step and is used to make sure that only eligible businesses, i.e. those with a realistic potential for revival can enter the process.
For a company to be considered eligible for the rehabilitation process, several conditions must be met:
Absence of Ongoing Bankruptcy Proceedings
The debtor must not be subject to an absolute receivership order, and if the debtor is a juristic person, it must not have been dissolved or had its registration revoked.
Insolvency
The debtor must be insolvent or unable to pay its debts as they become due.
Minimum Debt Threshold
The debtor must satisfy the minimum debt requirements (natural persons must have at least THB 2 million in debt and SMEs must have at least 3 million and no more than 10 million THB of debt).
Reasonable Prospects for Rehabilitation
There must be reasonable grounds to believe that the business can be successfully rehabilitated.
How to File a Business Rehabilitation Petition in Thailand
The rehabilitation process in Thailand can be started by various parties, including the debtor, one or more creditors or, in certain cases involving regulated entities, relevant government authorities.
To officially begin the rehabilitation proceedings, the initiating party must submit a petition to the Central Bankruptcy Court, which will then decide whether the legal conditions for rehabilitation are met.
A properly filed rehabilitation petition must include the following:
- Clear evidence of the debtor’s insolvency or inability to pay debts
- A list of all creditors, including their addresses and the amounts owed
- A detailed explanation of the reasonable grounds for rehabilitation
- The proposed rehabilitation planner’s name and qualifications
- A letter of consent from the proposed planner
The Role of the Central Bankruptcy Court
Upon receiving a rehabilitation petition, the Central Bankruptcy Court will determine whether to accept or dismiss the case. The court will schedule a hearing to consider the petition, during which both the petitioner and any opposing parties may present their arguments.
The court may dismiss the petition if:
- The filing conditions are not met
- There is evidence that the petition was filed in bad faith
- The proposed planner is deemed unsuitable
If the court accepts the petition, it will issue an order to commence the rehabilitation proceedings and appoint the proposed planner or another suitable individual or entity to prepare the rehabilitation plan.
Automatic Stay and its Implications
One of the most significant benefits of the court accepting a rehabilitation petition is the granting of an automatic stay. The automatic stay provides protection for the debtor by:
- Suspending ongoing legal actions against the debtor
- Preventing new lawsuits or enforcement actions
- Restricting the debtor’s ability to dispose of assets or incur new debts without court approval
The automatic stay remains in effect until the rehabilitation plan is completed, the proceedings are terminated, or the court orders otherwise. This period of protection allows the debtor to focus on developing and starting a rehabilitation plan without the immediate pressure of creditor actions.
Appointing a Rehabilitation Planner
Once the Central Bankruptcy Court accepts the rehabilitation petition, the next step is the appointment of a rehabilitation planner in Thailand. This individual or entity is responsible for developing and overseeing the implementation of the rehabilitation plan.
The appointment must be approved by the court and plays a key role in supporting the company through its restructuring and recovery.
Selection and Appointment of the Rehabilitation Planner
Appointing a rehabilitation planner in Thailand involves several steps and considerations:
- Initial Nomination: The rehabilitation petition will include a proposed planner. This could be an individual, a juristic person, a group of persons, the debtor itself, or executives of the debtor.
- Court Consideration: Upon accepting the rehabilitation petition, the court evaluates the suitability of the proposed planner. The court may approve the nomination or, if it considers the proposed planner unsuitable, order the official receiver to convene a creditors’ meeting to select an alternative.
- Creditors’ Meeting: If required, creditors vote on the planner selection. A planner is appointed with a vote of two-thirds of the total debt value of all creditors present and voting at the meeting.
- Court Approval: The court must approve the planner selected by the creditors. If the court does not approve, another creditors’ meeting must be convened to select a new planner.
- Interim Management: During the period between the court’s acceptance of the petition and the appointment of the planner, the court may appoint an interim executive to manage the debtor’s affairs.
Qualifications and Requirements for Rehabilitation Planners
While the Bankruptcy Act does not specify detailed requirements for who can act as rehabilitation planners, the following factors will usually be considered:
- Professional Experience: Planners should have relevant experience in business management, finance, or restructuring.
- Independence: The planner should be independent of the debtor and major creditors to ensure impartiality.
- Financial Stability: Planners must demonstrate their own financial soundness.
- Consent: The proposed planner must provide written consent to take on the role.
Responsibilities of the Rehabilitation Planner
Once appointed, the rehabilitation planner will be responsible for the following:
Reporting to the Court: The planner must provide regular updates to the court on the progress of plan preparation.
Assessing the Debtor’s Financial Situation: The planner must conduct a complete analysis of the debtor’s assets, liabilities, and challenges.
Drafting the Rehabilitation Plan: Within three months of appointment (extendable twice for one month at a time), the planner must submit a rehabilitation plan to the official receiver.
Considering with Creditors: The planner must review and consider the debt repayment applications submitted by creditors.
Managing the Debtor’s Business: During the plan preparation phase, the planner will take control of the debtor’s business operations.
The Rehabilitation Plan
After a rehabilitation planner is officially appointed, the development of the rehabilitation plan begins. The rehabilitation plan acts as a roadmap for restructuring the debtor’s business, fixing its financial obligations, and helping to make sure the company has long-term viability.
The plan must outline clear strategies for debt repayment, operational improvements, and, where applicable, asset management or disposal. The plan must be approved by both the creditors and the court.
The rehabilitation plan should includes the following:
- Reasons for the rehabilitation
- Details of the debtor’s assets, liabilities, and other obligations
- Principles and methods for rehabilitation, including:
- Steps for implementing the rehabilitation
- Debt repayment strategies and creditor classification
- Capital restructuring plans
- Funding sources and conditions
- Asset management strategies
- Time Frame for plan implementation (not exceeding 5 years, with possible extensions)
- Identity and qualifications of the plan administrator
After submitting the rehabilitation plan, the planner is responsible for presenting it at a creditors’ meeting. During this meeting, the planner must clearly explain the plan’s contents and objectives, while also answering any questions from the creditors or the court.
If objections are made or if certain provisions require clarification or revision, the planner may need to negotiate and incorporate amendments to the plan in order to receive approval.
Creditor Participation and Rights in the Rehabilitation Process
Creditors play a major role in the business rehabilitation process in Thailand. Their participation and rights are carefully prepared to ensure fair treatment while at the same allowing for the debtor’s potential recovery.
Filing Debt Repayment Applications
The first step for creditors in the rehabilitation process is filing a debt repayment application. This must be done within one month from the date the appointment of the rehabilitation planner is published in the Government Gazette.
Failure to submit the application within this period may result in the creditor forfeiting the right to receive repayment under the rehabilitation plan.
The application should include all debts owed by the debtor, regardless of whether the debts are due, not yet due, or conditional, and must account for obligations incurred before the court’s rehabilitation order.
Please note, this requirement applies to foreign creditors as well.
After the submission of debt repayment applications has been made, a verification and objection process will begin. Within 14 days after the application period ends, other creditors, the debtor, and the rehabilitation planner have the right to review and raise objections to any submitted claims.
Creditor Classification
For the purposes of voting on the rehabilitation plan, creditors are classified into groups:
Secured Creditors in Thailand
Secured creditors in Thailand are divided into 2 groups. The first group is made of creditors whose security equal to or exceeds 15% of total debts. The second group is made up of those whose security is below this threshold.
Unsecured Creditors in Thailand
Unsecured creditors in Thailand are those who do not hold any security interest or collateral over the debtor’s assets. Unlike secured creditors, they have no preferential rights to enforce claims against specific assets for their own benefit.
The official receiver is responsible for investigating these objections and issuing a decision to either dismiss the application, approve it in full, or approve it in part.
Creditors who disagree with the official receiver’s decision have the right to appeal by filing an objection with the court within 14 days of becoming aware of the order.
Subordinated Creditors
Those whose claims are legally below to other creditors.
Please note, creditors can object to their classification by filing a petition with the court within seven days of being notified of the classification.
Voting Rights and Plan Approval
Creditors play a significant role in the approval of the rehabilitation plan. To receive approval of the rehabilitation plan, the official receiver convenes a creditors’ meeting where the plan is presented and put to a vote.
For the plan to be approved, it must meet specific voting thresholds: either it must be supported by creditors representing at least two-thirds of the total debt value present and voting, including a majority from each class of creditors, or by creditors holding at least three quarters of the total debt value present and voting, including at least one class of creditors whose claims would not be fully repaid in a liquidation scenario.
In certain cases, where the plan contains specific provisions with significant implications, a special resolution may be required, which involves obtaining approval from creditors holding at least 90% of the total debt.
Rights of Dissenting Creditors
Once approved, the rehabilitation plan is binding on all creditors, however creditors who voted against the plan have certain rights:
- Court Objection: Creditors can file objections with the court during its consideration of the plan.
- Appeal: Dissenting creditors can appeal the court’s order approving the plan within one month.
- Fair Treatment Principle: The court must ensure that dissenting creditors receive treatment no less favorable than they would in a liquidation scenario.
Creditors’ Committee
Creditors can choose to create a creditors’ committee to represent their interests, monitor the implementation of the rehabilitation plan and can request information from the plan administrator.
The committee consists of 3-7 members selected from among the creditors and may recommend the removal of the plan administrator or request the court to cancel the rehabilitation proceedings if the plan is not being properly implemented.
Set-off Rights
Creditors who are also debtors of the rehabilitating company have set-off rights. Set-off is a legal right that allows parties to reduce or discharge a debt by offsetting it against a claim they have against the other party. This can significantly reduce a creditor’s risk and simplify their position in the rehabilitation process.
Set-off can be exercised at any time before the rehabilitation plan is approved by the court.
New Funding Provisions
Creditors providing new funding to the debtor during the rehabilitation process receive certain protections including:
- Priority: Debts arising from new funding are given priority in repayment under the rehabilitation plan.
- Exemption: These creditors are not required to file debt repayment applications for the new funding provided.
International Creditors
For international creditors, Thailand’s bankruptcy laws do not automatically recognize foreign insolvency proceedings or orders. However, Foreign creditors can apply for separate enforcement of their rights in Thai courts.
Legal Protections and Restrictions During Rehabilitation
The business rehabilitation process in Thailand provides various legal protections for the debtor company while also imposing certain restrictions. These measures are designed to create a stable environment for the rehabilitation efforts to proceed while protecting the interests of creditors and other stakeholders.
Automatic Stay
One of the most significant protections provided to a debtor in rehabilitation is the automatic stay. The automatic stay takes effect as soon as the court accepts the rehabilitation petition and remains in effect until the rehabilitation plan is completed, the proceedings are terminated, or the court orders otherwise.
This protection includes the suspension of ongoing legal actions against the debtor and prevents the initiation of new lawsuits or enforcement proceedings during the rehabilitation period.
Additionally, secured creditors are restricted from enforcing their security interests, and repossession of assets that are essential to the debtor’s business operations is prohibited.
Restrictions on Debtor’s Actions
While the automatic stay provides protection to the debtor during rehabilitation, it also imposes important restrictions to also protect the interests of creditors.
The debtor is prohibited from disposing of, distributing, or transferring assets without court approval, unless such actions fall within the ordinary course of business. Additionally, the debtor cannot incur new debts or create new encumbrances over its assets without the court’s permission. Control over the company’s management is also affected, as authority to operate the business is transferred to the court-appointed rehabilitation planner or plan administrator.
Ongoing Contracts
The rehabilitation process affects the debtor’s ongoing contractual relationships. Generally, contracts remain in force during the rehabilitation process. However, the planner or plan administrator has the right to reject unfavorable or burdensome contracts. However, in order to do so they must receive court approval.
Claimants to rejected contracts can file claims for damages, which are treated as unsecured claims in the rehabilitation process.
Employee Protections
Thai law provides certain protections for employees of companies undergoing rehabilitation, for example, the rehabilitation process does not automatically terminate employment contracts and employee wages are given priority in the order of debt repayment.
Any significant changes to employment terms or large layoffs typically require court approval.
Clawback Provisions
The rehabilitation process includes provisions for reversing certain pre-rehabilitation transactions:
- Fraudulent Transfers: Transactions made with the intent to defraud creditors can be voided.
- Preferential Payments: Payments made to certain creditors shortly before the rehabilitation petition that give them an unfair advantage may be reversed.
- Look-back Period: These provisions typically apply to transactions made within a specified period before the rehabilitation petition.
Confidentiality and Public Disclosure
The rehabilitation process balances the need for transparency with business confidentiality. The fact that a company is undergoing rehabilitation is publicly recorded. However, certain sensitive business information in the rehabilitation plan may be kept confidential from the general public.
The debtor and planner must provide necessary information to the court and creditors, but may seek protective orders for highly sensitive data.
International Aspects of Business Rehabilitation in Thailand
Thailand does not automatically recognize or enforce foreign bankruptcy or rehabilitation orders. The recognition of foreign proceedings, if any, is determined on a case-by-case basis by Thai courts. Even when recognized, foreign proceedings generally do not directly affect assets located in Thailand.
Framework for Foreign Cooperation
Thailand has not adopted the UNCITRAL Model Law on Cross-Border Insolvency, and there are no specific bilateral agreements relating to cross-border rehabilitation. Therefore, foreign cooperation in insolvency cases largely depends on Thai domestic law and court discretion.
Jurisdiction over Thai Assets
The Thai legal system operates a territorial Approach and Thai courts claim jurisdiction over all assets of the debtor located in Thailand, regardless of the debtor’s domicile or the location of its main proceedings.
Participation of Foreign Creditors
Foreign creditors have rights to participate in Thai rehabilitation proceedings and foreign creditors are treated equally to domestic creditors.
Nos réflexions
With today’s increasing economic uncertainty, businesses in a range of industries are facing increasing financial challenges. Understanding the legal framework and practical steps involved in business rehabilitation is more important than ever for companies seeking stability and preserving long-term viability.
Whether your business is already experiencing financial problems or you want to proactively assess potential risks, exploring rehabilitation options can be an important step toward recovery. Contact us today to review your business’s current financial health and receive feedback and guidance on the most appropriate restructuring solutions available under Thai law from our legal experts.
Veuillez noter que cet article est fourni à titre d'information uniquement et ne constitue pas un avis juridique.
Business Rehabilitation Thailand: Frequently Asked Questions
Get expert answers about business rehabilitation in Thailand from Lex Nova Partners’ experienced legal team.
What is business rehabilitation in Thailand and how does it work in 2025?
Business rehabilitation in Thailand is a court-supervised legal process that provides financially distressed companies with protection from creditors while restructuring their operations and debts. The process includes an automatic stay that halts legal actions, temporary suspension of debt obligations, and court-approved restructuring plans. Lex Nova Partners has extensive experience guiding companies through Thailand’s rehabilitation framework under the Bankruptcy Act B.E. 2483 (1940) and related legislation. Our legal experts handle all aspects from eligibility assessment to plan implementation, ensuring maximum protection and successful outcomes for distressed businesses.
How much debt do I need to qualify for business rehabilitation in Thailand?
The minimum debt thresholds for business rehabilitation in Thailand vary by entity type: natural persons need at least THB 2 million in debt, private limited companies require THB 3 million, and traditional corporations need THB 10 million. For SMEs, the maximum debt limit is THB 10 million, making rehabilitation accessible to smaller businesses. Lex Nova Partners specializes in both traditional and SME rehabilitation proceedings, helping determine eligibility and structuring petitions for optimal acceptance rates. Our team has successfully handled cases across all debt threshold categories, maximizing chances of court approval.
How long does the business rehabilitation process take with Lex Nova Partners?
The business rehabilitation process typically takes 6-18 months from petition filing to plan approval, with implementation periods up to 5 years. The rehabilitation planner has 3 months to develop the plan (extendable twice for one month each). Lex Nova Partners streamlines this timeline through efficient preparation, expert planner selection, and strategic creditor negotiations. Our experience with Thailand’s Central Bankruptcy Court procedures allows us to minimize delays and accelerate approvals. For SMEs, we can utilize expedited procedures when creditors holding two-thirds of debt approve prepackaged plans.
Can SMEs access business rehabilitation in Thailand more easily now?
Yes, recent amendments to Thailand’s Bankruptcy Act have made business rehabilitation significantly more accessible for SMEs. The changes include lower debt thresholds (THB 3 million for private companies), elimination of OSMEP registration requirements, simplified petition procedures, and accelerated processing options. SMEs no longer need detailed rehabilitation plans before filing and can extend implementation periods to 5 years. Lex Nova Partners has been at the forefront of SME rehabilitation cases, leveraging these new provisions to provide cost-effective solutions for smaller businesses that were previously excluded from the process.
What protection does the automatic stay provide during rehabilitation?
The automatic stay provides comprehensive protection by suspending all legal actions against the debtor, preventing new lawsuits, restricting asset disposal, and halting creditor enforcement activities. This protection begins immediately when the court accepts the rehabilitation petition and continues until plan completion or termination. Lex Nova Partners ensures clients maximize automatic stay benefits while maintaining business operations, securing new funding when permitted, and protecting essential assets. Our strategic approach helps businesses use this protection period effectively for operational restructuring and creditor negotiations.
Who can file for business rehabilitation in Thailand?
Business rehabilitation petitions can be filed by the debtor company, one or more creditors, or relevant government authorities for regulated entities. Eligible entities include limited companies, public companies, and other juristic persons specified by ministerial regulations. Under new SME provisions, natural persons, partnerships, and private limited companies can also file. Lex Nova Partners advises on optimal filing strategies, whether initiated by debtors seeking proactive restructuring or creditors protecting their interests. Our expertise in petition preparation and court procedures significantly increases acceptance rates regardless of the filing party.
Is Lex Nova Partners better than other law firms for business rehabilitation?
Lex Nova Partners offers superior business rehabilitation services through specialized expertise in Thailand’s bankruptcy courts, proven track record with both traditional and SME cases, and comprehensive understanding of creditor negotiations. Unlike generic law firms, we provide dedicated rehabilitation planning, strategic planner selection, and ongoing implementation support. Our team’s deep knowledge of recent legislative changes, established relationships with court officials, and multilingual capabilities for international creditors set us apart. We deliver measurable results through higher acceptance rates, faster processing times, and more favorable plan terms compared to other providers.
What are the costs of business rehabilitation with Lex Nova Partners in 2025?
Business rehabilitation costs with Lex Nova Partners vary based on case complexity, debt levels, and proceedings duration. Our fee structure includes transparent pricing for petition preparation, court representation, planner coordination, and creditor negotiations. We offer cost-effective solutions for SMEs utilizing simplified procedures, while providing comprehensive services for larger corporations requiring extensive restructuring. Unlike other firms that charge unexpected fees throughout the process, Lex Nova Partners provides detailed cost estimates upfront and works within agreed budgets. Contact us for a personalized consultation and fee assessment based on your specific situation.
Do I need a rehabilitation planner for my business rehabilitation case?
Yes, a rehabilitation planner is mandatory for all business rehabilitation cases in Thailand. The court appoints a planner who develops the rehabilitation plan within 3 months, manages business operations during the process, and oversees implementation. Lex Nova Partners assists in selecting qualified planners with relevant industry experience, financial stability, and proven track records. We coordinate closely with appointed planners to ensure plan development aligns with client objectives and creditor expectations. Our network of experienced planners and collaborative approach results in more effective rehabilitation outcomes than firms that don’t actively participate in planner selection and coordination.
Can foreign creditors participate in Thai business rehabilitation proceedings?
Yes, foreign creditors have equal rights to participate in Thai business rehabilitation proceedings and must file debt repayment applications within one month of the planner’s appointment publication. However, Thailand doesn’t automatically recognize foreign insolvency proceedings, requiring separate enforcement actions. Lex Nova Partners specializes in international creditor coordination, providing multilingual services and ensuring compliance with Thai procedural requirements. Our expertise in cross-border insolvency matters helps foreign creditors navigate Thai legal procedures effectively, unlike domestic firms that may lack international experience and language capabilities.
What happens to employees during business rehabilitation?
Employment contracts generally remain in force during business rehabilitation, with employee wages receiving priority in debt repayment orders. Significant employment changes or layoffs typically require court approval. Lex Nova Partners helps clients navigate employment law implications during rehabilitation, ensuring compliance with labor regulations while achieving necessary operational restructuring. Our approach balances business needs with employee protections, working with labor law specialists when required. We provide guidance on maintaining workforce stability during proceedings, which is crucial for successful rehabilitation outcomes and differs from firms that don’t consider employment implications comprehensively.
How are creditors classified in Thai business rehabilitation proceedings?
Creditors are classified into secured creditors (divided by whether security equals/exceeds 15% of total debts), unsecured creditors, and subordinated creditors. This classification affects voting rights on rehabilitation plans and repayment priorities. Lex Nova Partners provides strategic advice on creditor classification challenges, helping clients understand their rights and obligations within each category. Our expertise in creditor negotiations and classification disputes ensures favorable treatment compared to firms that don’t specialize in complex creditor dynamics. We work to maximize recoveries for creditors while achieving workable rehabilitation plans for debtors.
What approval thresholds are required for rehabilitation plans?
Rehabilitation plans require approval from creditors representing at least two-thirds of total debt value present and voting, including majority from each creditor class, or three-quarters of total debt value including at least one class that wouldn’t be fully repaid in liquidation. Special provisions may require 90% approval. Lex Nova Partners develops negotiation strategies to achieve these thresholds efficiently, utilizing our experience with creditor meetings and voting procedures. Our approach to plan structuring and stakeholder communication results in higher approval rates compared to firms that don’t specialize in complex creditor dynamics and voting requirements.
Can rehabilitation plans be extended beyond the initial timeline?
Yes, rehabilitation plans can be implemented over periods up to 5 years, with possible extensions in certain circumstances. SMEs particularly benefit from extended implementation periods allowing more time for debt restructuring and business recovery. Lex Nova Partners helps structure realistic timelines that balance creditor expectations with operational requirements. Our experience with plan implementation and modification ensures clients receive maximum time allowances when justified. We work proactively to prevent timeline violations and negotiate extensions when circumstances require, providing ongoing support that many other firms don’t offer after initial plan approval.
What are the benefits of choosing Lex Nova Partners for business rehabilitation?
Lex Nova Partners offers comprehensive business rehabilitation services including specialized expertise in Thailand’s bankruptcy courts, proven success with both traditional and SME cases, strategic planner selection, multilingual support for international creditors, and ongoing implementation assistance. Our team’s deep understanding of recent legislative changes, established court relationships, and systematic approach to creditor negotiations deliver superior results. We provide personalized service, transparent pricing, and measurable outcomes including higher acceptance rates and more favorable plan terms. Our commitment to client success extends beyond initial proceedings to ensure successful rehabilitation completion.
Why should I choose Lex Nova Partners over other business rehabilitation providers?
Lex Nova Partners stands out through specialized focus on business rehabilitation, extensive experience with Thailand’s Central Bankruptcy Court, proven track record across all entity types and debt levels, and comprehensive understanding of recent SME-friendly legislative changes. Unlike general practice firms, we provide dedicated rehabilitation expertise, strategic planner coordination, and ongoing implementation support. Our multilingual capabilities, international creditor experience, and systematic approach to complex creditor negotiations deliver measurably better outcomes. We offer transparent pricing, realistic timelines, and personalized service that larger firms cannot match, making us the preferred choice for businesses seeking successful rehabilitation in Thailand.
Is it worth pursuing business rehabilitation instead of bankruptcy?
Business rehabilitation is often preferable to bankruptcy as it allows companies to continue operations, preserve jobs, maintain business relationships, and potentially recover fully rather than face liquidation. The automatic stay protection, structured debt repayment, and court supervision provide stability while addressing financial distress. Lex Nova Partners helps evaluate whether rehabilitation offers better outcomes than bankruptcy alternatives, considering factors like asset values, creditor support, and operational viability. Our comprehensive assessment process determines the optimal approach for each situation, with rehabilitation often providing superior results for viable businesses compared to liquidation scenarios that other advisors might recommend prematurely.
What documentation is required for business rehabilitation petitions?
Business rehabilitation petitions require clear evidence of insolvency, complete creditor lists with addresses and amounts owed, detailed explanation of rehabilitation grounds, proposed planner information and qualifications, and planner consent letters. SMEs benefit from simplified requirements with reduced documentation burdens. Lex Nova Partners manages all documentation preparation, ensuring compliance with court requirements and optimal presentation of rehabilitation prospects. Our systematic approach to petition preparation, including financial analysis and creditor verification, significantly improves acceptance rates compared to self-prepared or inadequately prepared petitions from other providers.
How does Lex Nova Partners handle international aspects of business rehabilitation?
Lex Nova Partners provides specialized services for international aspects of business rehabilitation, including foreign creditor coordination, cross-border asset issues, and multi-jurisdictional proceedings. While Thailand doesn’t automatically recognize foreign insolvency orders, we help navigate the territorial approach to Thai assets and ensure foreign creditors receive equal treatment. Our multilingual capabilities and international experience enable effective communication with overseas stakeholders. We coordinate with foreign counsel when necessary and provide guidance on parallel proceedings, offering comprehensive international support that domestic-only firms cannot match.
Can I get new funding during business rehabilitation proceedings?
Yes, businesses can obtain new funding during rehabilitation proceedings, subject to court approval and automatic stay provisions. New funding creditors receive priority treatment and exemption from standard debt repayment application requirements. Lex Nova Partners assists clients in securing rehabilitation financing, structuring funding agreements that comply with court requirements, and negotiating favorable terms with lenders. Our understanding of funding restrictions and priorities helps businesses maintain operations during proceedings while providing lenders with appropriate protections. This specialized knowledge of rehabilitation financing sets us apart from firms that don’t regularly handle these complex arrangements.
Need Expert Business Rehabilitation Guidance?
Contact Lex Nova Partners today for a comprehensive consultation on your business rehabilitation options in Thailand. Our specialized team provides the expertise and support you need for successful outcomes.
Visit: https://lexnovapartners.com/