2023 was a year of political and economic uncertainty in Thailand, especially for the Thai stock market, when a number of companies in financial distress aggressively sought rescue by engaging in a formal court-supervised restructuring process (known as “Rehabilitation Proceedings”). This trend is expected to continue in 2024.

2023 Key Takeaways

1. INTRODUCTION

On 15 June 2021, the Central Bankruptcy Court approved the rehabilitation plan for Thai Airways International PCL (“THAI”), marking a significant milestone for one of the largest insolvency proceedings in Thailand.  A number of factors underlined the unprecedented nature of the THAI restructuring. This was the first-time rehabilitation proceedings were sought by a national flag-carrying airline in which the Thai government controlled a substantial portion of the equity.

As the global travel industry continues to grapple with the effects of COVID-19, many companies are now beginning to seek protections under various insolvency regimes. On 30 July 2020, Nok Airlines Public Company Limited ("NOK") filed a petition for business rehabilitation under the Bankruptcy Act at the Central Bankruptcy Court of Thailand (the "Court") and the Court accepted such petition on the same day under case number ForFor. 21/2563 with a debt amount of THB 26,522,203,418. NOK has nominated the following as its rehabilitation planners: