| Author | Artorn Lertboonyaphan |
| Call Number | AIT RSPR no. SM-00-67 |
| Subject(s) | Corporate debt--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-00-67 |
| Abstract | After the economic crisis that erupted in 1997, many Thai corporations encountered financial distress in their businesses. This problem could greatly affect the debt servicing ability of those corporations. Eventually, if that problem could not be solved, the loan could become NPL. The NPLs or Non Performing Loans affected the viability and liquidity of many businesses. A way to deal with NPLs problem is to do debt restructuring. Therefore, the corporate debt restructuring is becoming a hot issue and increasingly important for solving the NPLs problem. Corporate debt restructuring is an agreement between the concerned parties in order to modify the terms and the timing of the repayment of debt. The objective of debt restructuring is to enhance profitability, reduce leverage and restore credit viable enterprises. This paper studies and summarizes the basic principles of corporate debt restructuring in general, the causes of financial distress in Thailand after the recent economic crisis, the approaches of corporate debt restructuring currently being adopted in Thailand, and the role of Bank of Thailand to promote the debt restructuring. In the last part of this research study, it will devote to case study of companies that have implemented the debt restructuring. One is a successful case and the other is not successful. The success factors for the successful case will be discussed. The conclusion and recommendation about this research will then be presented. The finding from this research suggests that for debt restructuring to be successful the government must take a leading role in providing good regulatory framework. The indebted company must have good and strong management to be able to carry out the rehabilitation process. The economic viability of the business is also a very important factor. On the other hand, the factors that inhibit restructuring are bad market condition, inexperience about debt restructuring, bad information and the economic non-viability of the firm |
| Year | 2000 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-00-67 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S.; |
| Examination Committee(s) | Sununta Siengthai;Piman Limpaphayom; |
| Scholarship Donor(s) | Asian Institute of Technology (Pa1tial Scholarship); |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2000 |