COVID-19 and the resulting lockdown measures to limit outbreaks in Thailand have caused significant financial difficulties for many business operators, large and small. Whether a business is a creditor or debtor, there is a high likelihood they have faced or will face a default caused by the pandemic. This article identifies three legal options available when a party defaults—civil cases, bankruptcy actions, and business rehabilitation actions—and compares key elements associated with each option. For context, those three options are defined as follows: Civil case. A legal proceeding in which a creditor files a civil lawsuit (or arbitration claim) against a debtor for debt collection. If a debtor fails to settle a debt in accordance with a judgment, the creditor can ask the court to enforce the judgment by seizure and sale of the debtor’s assets through public auction. Bankruptcy action. A legal proceeding under the Bankruptcy Act in which a government authority can collect a debtor’s assets, sell the assets by public auction, and distribute the net proceeds among creditors. In bankruptcy proceedings, the creditors will receive repayment in proportion to the size of the outstanding debts. Business rehabilitation action. A legal proceeding under the Bankruptcy Act aimed at helping a debtor recover from insolvency and continue its business. Debtors are given debt relief and a “new start” through business rehabilitation, while creditors are able to collect a higher percentage of outstanding debt under rehabilitation than they would under a bankruptcy action. In short, a civil case is a claim in court for repayment of a specific debt, a bankruptcy action results in distribution of the debtor’s assets among the creditors, and a business rehabilitation action aims to enable the debtor to stay in business while repaying their debts to some degree. A civil case may be appropriate when

Attorneys from Tilleke & Gibbins have prepared the Thailand section of the Foreign Investment Restrictions Guide, published by Lex Mundi. The guide provides answers to key questions related to the regulatory regime for foreign investments in the jurisdictions of Lex Mundi member firms in 57 jurisdictions around the world. Each country-specific section contains in-depth information on the jurisdiction’s legal framework governing employment relationships, addressing the following questions and topics: General overview of the country’s foreign investment restrictions Sectors subject to investment restrictions Relevant thresholds, notification obligations, and approval requirements Grounds to block a foreign investment Information specific to COVID-19 and other relevant potential developments The guide draws on the expertise of Lex Mundi member firms from around the world. Its innovative format allows users to compare current information from multiple jurisdictions in a side-by-side customizable report. To browse the contributions, generate country-specific reports, and compare regulatory guidance on cross-border investment and transactional activity across multiple jurisdictions, please visit the Lex Mundi website.

Laos’ first law specifically addressing contracts for electronic transactions comes as a relief to operators who had previously been left to interpret laws on contracts generally in a context for which they were not designed.