Year in Review – Thai Law in 2016

What are the options for companies in financial difficulty in Taiwan?

If the company is listed on the Taiwan stock exchange, then the company may pursue a formal reorganisation as set forth under Article 282 of the Company Act.  

If a listed company (as referred to above) is unable to pursue reorganisation, and in respect of all other companies, a company will enter into a formal bankruptcy procedure under the Bankruptcy Act in order to implement an equitable and orderly repayment scheme amongst its creditors.  

The insolvency of Petroplus has increased the few debt moratorium cases by one and reminded us of its importance. Despite a comprehensive revision of the Swiss Debt Collection and Bankruptcy Act in 1997 there has been little change to the fundamental idea of bankruptcy law that both available options, namely bankruptcy and debt moratorium, lead mostly to the same result and that is: liquidation.

Thailand introduced reforms to its bankruptcy laws in 1998 in the aftermath of the 1997 Asian financial crisis. Those reforms introduced business reorganisation provisions similar to the Chapter 11 provisions of the US Bankruptcy Code. Further amendments have been made to the Thai bankruptcy laws, which are now governed by the Bankruptcy Act BE 2483 (1940) as amended by the Bankruptcy Act (No. 7) BE 2547 (2004).

A partnership begins with a splash of optimism—a toast to the future and a plan for capitalizing on business opportunities. But what happens when it all goes wrong? Aggressive creditors may force a partnership into bankruptcy and certain individual partners may be required to follow. This article is a primer on the bankruptcy liability of partners.

Coronavirus (Covid-19), Uyuşmazlık Çözümü

COVID-19 (korona virüs) salgın hastalığının ülkemizde yayılmasını önlemek amacıyla alınan tedbirler kapsamında; 22.03.2020 tarihli ve 31076 sayılı Resmî Gazete’de İcra ve İflas Takiplerinin Durdurulması Hakkında Cumhurbaşkanı Kararı (“Cumhurbaşkanı Kararı”) yayımlanmış ve yürürlüğe girmiştir.

Cumhurbaşkanı Kararı’nın 1. (birinci) maddesi ile;

In scope of the measures taken to prevent COVID-19 outbreak from spreading within our country, the Presidential Decree on Suspension of the Enforcement and Bankruptcy Proceedings dated 21 March 2020 and numbered 2279 (“the Presidential Decree”), which was issued based on Article 330 of the Enforcement and Bankruptcy Act, has entered into force upon publication in the Official Gazette dated 22 March 2020 and numbered 31076.

İşbu bilgi notu, 7101 sayılı İcra ve İflâs Kanunu ve Bazı Kanunlarda Değişiklik Yapılması Hakkında Kanun’un (“7101 Sayılı Kanun”) konkordatoya ilişkin bir hüküm olan İcra İflas Kanunu’nun (“İİK”) 296. maddesinin  sözleşmelerin yürürlükleri bakımından etkileri hakkında bilgilendirmede bulunmak amacıyla hazırlanmıştır.

Konkordatoya ilişkin yapılan değişikliklerle kanun koyucu maddi hukuka müdahale edebilmektedir. (İİK madde 294/1, 294/3, 294/4, 294/6, 296/1, 296/2).

Recent Development

The Law on the Amendments to the Code of Enforcement and Bankruptcy and Certain Laws ("Law No. 7101") was published on the Official Gazette on March 15, 2018.

Background

As a result of the studies conducted by the Coordination Council for the Improvement of the Investment Environment, the Law No. 7101 was introduced to the Turkish Parliament.

Introduction

Law No 7101 on Amendments to the Enforcement and Bankruptcy Law and Other Laws (“Law No 7101”) has been published in the Official Gazette dated 15 March 2018. Law No 7101 i) abolishes the postponement of bankruptcy procedures, ii) introduces a new composition procedure for insolvent companies and iii) improves secured creditors’ rights in bankruptcy.

Lifting of Postponement of Bankruptcy