In recent times, the corporate landscape has witnessed a significant shift as Environmental, Social, and Governance (ESG) initiatives gain traction among investor and consumer groups. Companies operating in carbon-centric industries, particularly those involved in fossil fuel extraction, are experiencing challenges in securing new funding. One such company, Nashville-based driller Alpine Summit Energy Partners, has made headlines by seeking bankruptcy protection, citing the lack of funding in the oil and gas industry due to growing ESG and sustainability concerns.

This year is expected to be challenging for small businesses due to the possible recession in key markets, disruptions of global supply chains caused by issues such as the Ukrainian war, and the continuing fallout from last year’s crypto winter.

One gauge of the level of business distress is the number of bankruptcy applications filed, which have risen sharply in 2021. Often seen as a last resort, this indicates that despite the continued support of the government and financial institutions, many businesses see filing bankruptcy as the best option for their businesses to survive. According to the Central Bankruptcy Court (Bankruptcy Court), 9,171 bankruptcy proceedings were filed in 2020 for a total value of THB 836.803 billion (compared to 5,415 cases in 2018 and 8,398 in 2019).

Thailand is currently facing challenges as a result of a global economy under pressure from the COVID-19 pandemic, leading numerous companies to struggle with insolvency. Some companies will be facing this stress in multiple jurisdictions with current travel restrictions hindering their ability to deal with any resultant crisis in person.