Corporate Debt Workouts & Business Restructuring in Thailand

Businesses in Thailand occasionally reach a point where financial restructuring becomes essential, whether due to market downturns, liquidity issues, or operational inefficiencies. Thai law provides structured mechanisms to reorganize debt, negotiate with creditors, and restore corporate stability. BASE Law Firm advises companies of all sizes through these complex processes, helping them recover viability and avoid unnecessary insolvency proceedings.

Our service include:

Debt review and mapping
Creditor negotiation support
Restructuring plan drafting
Court-rehabilitation representation
Compliance during rehabilitation
Strategy for business recovery

Understanding Corporate Reorganisation Under Thai Law

Thailand’s legal framework allows financially distressed companies to reorganize their obligations either formally through court-supervised restructuring or informally through negotiated settlements. These mechanisms aim to preserve business operations, protect creditor rights, and provide a clear roadmap toward sustainable recovery.

Corporate reorganisation procedures apply to:

Juristic entities facing accumulated debt or cash-flow shortages
Businesses seeking to consolidate creditor claims
Companies that require court-approved restructuring plans
Entities aiming to avoid liquidation or bankruptcy

A well-structured plan can freeze legal actions, prevent asset seizures, and create conditions for long-term rehabilitation.

Key Components of a Business Restructuring Strategy

Effective restructuring often requires a combination of legal, financial, and operational adjustments. BASE Law Firm assists clients with a wide range of components, including:

1. Debt Assessment & Creditor Mapping

A comprehensive review of liabilities, including outstanding loans, trade debts, secured obligations, and contingent liabilities. Identifying creditor classes is essential before negotiations begin.

2. Negotiation of Debt Settlement

Companies may negotiate with creditors to achieve:

Reduced principal
Lower interest rates
Extended payment periods
Standstill agreements
Conversion of debt into equity (where appropriate)

These negotiated settlements often allow businesses to stabilize without entering formal court proceedings.

3. Preparation of Reorganisation Plans

If court-supervised restructuring is necessary, a detailed rehabilitation plan must be prepared. This may include:

Revenue improvement strategies
Cost-reduction and operational restructuring
Asset management and divestment plans
Cash-flow projections
Debt repayment schedules

Once submitted, the plan must be approved by a majority of creditors per statutory requirements.

4. Formal Court Rehabilitation

Under Thailand’s Bankruptcy Act, a company may file for rehabilitation when it is insolvent or unable to meet obligations. Once accepted by the court:

Creditors are temporarily barred from initiating lawsuits
A planner or plan administrator is appointed
The restructuring plan becomes binding upon approval

Court-supervised restructuring is often chosen when creditor disputes cannot be resolved privately.

When Businesses Should Consider Restructuring

Companies typically explore restructuring options when they encounter:

Persistent cash-flow shortages
Difficulty servicing existing loans
Disputes among creditors
Deteriorating balance sheets
Risk of bankruptcy or legal enforcement

Acting early increases the likelihood of a successful recovery and reduces the risk of asset loss.

How BASE Law Firm Supports Businesses in Distress

BASE Law Firm delivers a comprehensive service for organizations facing financial pressure. Our assistance includes:

Evaluating the financial condition of the business
Advising on informal settlement vs. formal reorganisation
Negotiating with banks, suppliers, lenders, and secured creditors
Drafting reorganisation petitions and supporting documents
Representing companies throughout court rehabilitation proceedings
Implementing approved plans and ensuring compliance with statutory obligations

We understand the operational and financial pressures faced by distressed companies and provide clear, practical guidance aimed at restoring business continuity.

Summary

Corporate restructuring in Thailand is a legally defined process that allows businesses to reorganize debt, safeguard assets, and regain financial stability. Whether your company needs private negotiation or formal rehabilitation, expert legal direction is critical.

BASE Law Firm offers strategic and results-focused support throughout every phase of restructuring, from assessing financial exposure to negotiating settlements and guiding clients through the court system. If your business is facing financial difficulties, our team is ready to deliver the strategies and representation necessary to secure a workable recovery path.