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Corporate Insolvency Applications in Thailand

Transcript of the above video:

As the title of this video suggests, we are discussing Corporate Insolvency in Thailand. There is a preliminary application process associated with the dissolution of a Thai Company. It may ultimately involve bankruptcy proceedings here in Thailand. We have made a number of videos on this channel regarding corporate bankruptcy. Unfortunately, this is a topic that is on the lips of more and more people and we have seen it with more and more frequency with respect to enquiries we have had here at the firm. My thoughts really do go out to those folks, especially in the SME context. The response to COVID-19 has been devastating especially in the tourism sector, the food and beverage areas, the entertainment sector here in Thailand. All generally very vibrant business sectors but they have really just been decimated in the response to COVID-19 these past months. The lockdown and the restrictions, it has been very difficult to maintain these kinds of businesses. 

So the reason for this video is we are talking about insolvency applications. Let me be clear, I am an American Attorney. I am a naturalized Thai citizen and I am the Managing Director of the firm. I don't deal directly obviously. The Thai Attorneys as well as the accounting division here deal directly with bankruptcy matters, insolvency and dissolution matters. I oftentimes end up working in tandem with those folks because it is sometimes easier often times to explain in a comparative legal context, what is the process, what is happening in a bankruptcy or a dissolution proceeding or insolvency matters and explain it in a context that it is easier for folks to understand because they oftentimes have a touchstone in a foreign legal concept. 

Long story short, there is a preliminary number of steps associated with possible dissolution, possible bankruptcy. These proceedings generally are prefaced or predicated if you will, by notices of insolvency or notifying various creditors that it is not going to be possible to pay. I am not going to get too deep into this because long story short it is going to be very fact specific, very dependent on the specific facts of a given case how exactly one deals with a company that has been rendered insolvent. 

So the reason for making this video is it is probably a good idea to contact a legal professional. There are ramifications if a company falls into disrepair and becomes defunct without dealing with the proper formal steps of either dissolving the Company or taking it down to a point where creditors are satisfied enough, that it is not going to lead to any further legal proceedings or things, making a Company for lack of a better term, dormant. It is going to be very case specific how you formulate strategies to deal with an insolvent company but it is probably a good idea to get some insight and guidance from Attorneys here in Thailand as well as accounting professionals who have experience dealing with Tax matters in the case of insolvency or possibly bankruptcy matters, corporate dissolution and the issues associated therewith here in Thailand.