Thailand: Insolvency/Bankruptcy/Re-Structuring

Significant economic challenges facing Thailand in recent years have placed financial pressure on both individuals and businesses. As a result, many debtors may find themselves unable to meet their repayment obligations, leading to bankruptcy proceedings.

Thai law offers no explicit guidance on how arbitration and insolvency interact, leaving practitioners to navigate the intersection of two separately drafted statutes—the Bankruptcy Act and the Arbitration Act—without settled rules. Key questions about representation, enforcement of awards, and the treatment of foreign insolvency proceedings depend on inference from general principles rather than express provisions.

Thailand's recent amendment to the Civil Procedure Code has reduced execution officer fees and eliminated certain costs where enforcement proceedings conclude before assets are sold.