THAILAND Law and Practice Contributed by: Nathee Silacharoen, Tawatchai Boonmayapan and Norrapat Werajong, Chandler Mori Hamada
tor must apply for bankruptcy with the court. In this regard, the court has the authority to issue an absolute receivership order against the company without the need for the examination of witnesses.
a “plan administrator”, who is responsible for imple - menting the approved Plan. The planner and the plan administrator (except when the debtor itself or its management takes on these roles) must be registered and meet the qualifications set out under the Ministerial Regulations Regarding Registration and Qualifications of the Plan Preparer and Plan Administrator BE 2545 (2002) and its amend - ments BE 2558 (2015). The planner assumes duties upon appointment by the Bankruptcy Court, while the plan administrator assumes duties upon acknowledg - ment of the court’s approval of the Plan. In both bankruptcy proceedings and rehabilitation proceedings, there are two main types of creditors: • secured creditors (which include preferential claims); and • unsecured creditors. In bankruptcy proceedings, assets are distributed to creditors in the following order of priority. • Secured creditors. • Unsecured creditors, for the following costs and debts: (a) estate administration fees; (b) official receiver’s costs and expenses for the administration of the debtor’s assets; (c) funeral expenses; (d) fees for collecting and gathering the debtor’s assets; (e) petitioning creditor’s fees and counsel’s fees as prescribed by the court or official receiver; (f) taxes due within six months prior to the re - ceivership order and the wages owed to the debtor’s employees for up to four months prior to the receivership order (but capped at THB100,000 per employee); and (g) any other debts. • Creditors who, by law or contract, are entitled to repayment only after other creditors have been fully repaid. 2. Creditors 2.1 Types of Creditors
1.3 Statutory Officers Bankruptcy Proceedings
In bankruptcy proceedings, an “official receiver” is appointed under the Bankruptcy Act to oversee the realisation and distribution of the debtor’s assets. The official receiver is granted full authority to manage the debtor’s assets and to enforce any rights related to the
debtor’s assets, including: • disposing of assets; and
• collecting and receiving money and assets that belong to the debtor or that the debtor is entitled to receive from others. The official receiver is also responsible for settling, fil - ing or defending legal actions concerning the debtor’s assets, and for assessing the merits of claims for debt repayment filed by creditors. An official receiver is a government official (ie, an offi - cial from the Legal Execution Department of the Min - istry of Justice) assigned to monitor bankruptcy and business rehabilitation proceedings. The rights and duties of the official receiver are provided under the Bankruptcy Act. Business Rehabilitation Proceedings In business rehabilitation proceedings, the official receiver is appointed to supervise and monitor the proceedings, and to assess the merits of all debt repayment applications filed by creditors. In addition, the Bankruptcy Court appoints a “plan - ner” – based on the proposal of the petitioner(s) for the debtor’s rehabilitation or by decision of the credi - tors’ meeting, as the case may be – to prepare the rehabilitation plan (the “Plan”) and to assume respon - sibility of the debtor’s executive management during the Plan’s preparation. After the creditors approve the proposed Plan, the court must confirm the Plan and issue an endorsement order. At that point, control of the debtor’s business transfers from the planner to
463 CHAMBERS.COM
Powered by FlippingBook