Law amended to help SMEs

BANGKOK, June 12 (TNA) -- The government has for the first time amended the Bankruptcy Act which gives an opportunity to bankrupted small and medium-sized enterprises (SMEs) to rehabilitate businesses, said Prime Minister's Office spokesman Sansern Kaewkamnerd. Maj Gen Sansern said the law amendment, considered the third in Asia after Japan and South Korea, by the Thai government which has been enforced since May 25 this year would give opportunities to debtors which include individuals and firms engaging in SME businesses and unable to settle debts to file an appeal to rehabilitate the business to the Central Bankruptcy Court. Previously, only company limited and public company limited could submit an appeal to rehabilitate the business. Potential SMEs but encounter a cash flow problem and unable to settle debts which are not much would be assisted by the government through a pre package programme, said the spokesman. Under the amended law, individuals wishing to restructure the business must have debts not less than two million baht, registered ordinary partnership firms over three million baht and for company limited not exceeding 10 million baht to be entitled to apply for business restructuring. Debtors must file an appeal to the Central Bankruptcy Court while the business rehabilitation plan must be approved by creditors after which the final court ruling will be made. After the court gives approval, debts could eek for loans from financial institutions, the spokesman added. (TNA)