Counsel in Thailand have called for a revamp of the
country’s decades-old bankruptcy law to expedite
in-court restructures, as authorities grapple with a resurgence
of non-performing loans (NPL).
Sahaviriya Steel Industries (SSI), one of
Thailand’s largest steel manufacturers, has
resorted to court-supervised debt restructuring after last
month recording the country’s biggest loan default
since the Asia financial crisis.
But counsel have pointed to antiquated provisions on debt
reorganisation under the Bankruptcy Act, and
courts’ ability to decide on the timeframe for
hearings which can lead to long restructuring proceedings.
"A fixed, legally-binding timeframe should be set on
judicial reorganisation proceedings, so that distressed
companies would be encouraged to enter into court-supervised
reorganisation," said Pitchitpon Eammongkolchai, partner...