Restructuring & Insolvency
Why Rehabilitation?
Rehabilitation is not bankruptcy.
Rehabilitation is a court-approved process that provides you with time to renegotiate your obligations and make them more manageable. This may include being granted a moratorium on civil lawsuits, extending repayment or grace periods on existing debts, reducing the amounts owed to your creditors, or eliminating unwarranted future obligations.
Many otherwise profitable companies can find themselves needing short- and long-term relief as a result of unplanned and unforeseeable events—even just bad luck. Some of the largest companies in the world have sought creditor protection and used the rehabilitation process to come back stronger and ultimately reclaim their market-leading positions.
A key requirement of the Thai rehabilitation process is to partner with your creditors in a court-supervised process and work together to find a solution. In Thailand, a creditor, or a group of creditors, owed more than THB 2 million can force a company into bankruptcy and liquidation, destroying an owner’s hard work in an instant. Rehabilitation can help protect you from being forced to close without notice and sell off all you own at auction. Rehabilitation will also allow you time to negotiate and restructure debt, implement cost-saving measures, and emerge a financially healthier company.
At Formichella & Sritawat, we aim to dispel the stigma surrounding the bankruptcy process and assist you in exploring all your legal options. If your company is struggling to meet its obligations and requires respite, Silk Advisory can collaborate with you. Our team of turnaround specialists possess direct experience in advising companies of all sizes in Thailand, resulting in numerous successful turnarounds.
Our bankruptcy practice assists both debtors and creditors through the processes of Thai bankruptcy law. Our experience ranges from liquidation to reorganization. Our reorganization practice is well experienced in remodeling of financial and organizational structures, and rehabilitation plans.
Through our criminal practice, we also represent victims of bankruptcy fraud.
Some of our most recent experience includes:
- We advised and represented a group of entertainment and hospitality companies on corporate structuring and bankruptcy claims, including negotiations with debtors and creditors, and a rehabilitation plan.
- We advised a Japanese mining and manufacturing conglomerate on corporate restructuring of its Thai companies due to disruptions from the COVID pandemic.