As a consequence of the current situation of economic crisis and the sudden braking in construction, we observe that every day we are finding ourselves with fresh news of negotiations with financial institutions, and applications for declarations of bankruptcy from creditors.
Thailand’s economy does not paint an image that befits the country’s reputation as the “Land of Smiles.” Politics, drought, floods, and conflict in the Deep South have taken their toll on Thai businesses. As a result, we have seen a steadily rising number of business reorganizations over the past few years. This article outlines Thailand’s business reorganization procedures and how creditors can collect debts from companies involved in reorganization.
Last week Verkhovna Rada approved, in principle, the Draft Law No. 3555 which introduces special procedure of voluntary financial restructuring of corporate debtors.
Introduction:
The Government of Dubai issued a press release on 25 November 2009 confirming that, through its Supreme Fiscal Committee (SFC), it has authorised the Dubai Financial Support Fund (DFSF) to spearhead the restructuring of Dubai World with immediate effect. Aidan Birkett, Managing Director of Corporate Finance at Deloitte, has been appointed as Chief Restructuring Officer (CRO) to "oversee the restructuring process and ensure the continuity of Dubai World's operation".
Summary
FSA is consulting on the need for certain financial services firms to prepare and maintain Recovery and Resolution Plans (RRPs) and in addition for some of these firms, and others, to make further preparations for their investment client money and custody assets (CMA) holdings.
Why now?
Since 2003, the procedure for appointing administrators has largely consisted of filing simple forms with a court. What could be easier? A recent case has, however, highlighted the dangers of making errors in the filing process and serves as a timely warning to everyone involved in insolvency and security enforcement work.
In Kaupthing Capital Partners II Master LP Inc, the English courts ruled that an appointment of administrators was invalid as the incorrect form had been used for the appointment.
On 8 July, the Pensions Regulator’s Determinations Panel published a determination to issue a financial support direction against 25 companies in the Nortel group in Canada, the US, Europe and Africa.
In 2009, almost 3000 construction firms entered into some form of insolvency procedure, leaving many parties owed money by insolvent firms. These debts could be pursued against the third party's insurer under the Third Parties (Rights) Against Insurers Act 1930. However, debt recovery will be made quicker, cheaper and easier once the Third Parties (Rights) Against Insurers Act 2010 is commenced by Parliament.