| Abstract | Debt restructuring is an alternative for solving financial distress problem. In Thailand, debt
restructuring is becoming a significant method of solving the financial problems for
corporations to meet their obligation and survive. Debt restructuring is a challenge for the
participants, who are debtors, banks, financial institutions, financial advisers, and government
to come to an agreement which is mutually beneficial.
In general, the most commonly used techniques for debt restructuring comprise of
rescheduling the terms of payment, write-off, debt-asset swap, debt-equity swap and debtbond conversion. However, these techniques have to be practiced under standard procedures
and regulations provided by government agency. In the case of Thailand, the government
realizes that debt restructuring is a key factor to help economic recovery. Thereafter, the
framework and regulation for debt restructuring were formulated with the cooperation of all
participants. In addition, the Thai government stimulates corporations by eliminating tax
disincentives to facilitate the process.
This research will study the practical process, identify pre-entering requirements, factors
related to success, barriers and other factors related to the debt restructuring pror,ess. The
study also gives the case study of Thai's property development company restructuring. The
analysis shows that the company was able to meet its obligations through debt restructuring.
The methods of debt-asset swap and debt-equity swap were used for loan repayment.
Therefore, it shows that the company can survive during the economic crisis by applying
restructuring strategy. Finally, conclusions and recommendations for further study are
included. |