The key to the economy is production. Which one important production factor is "capital" And in undertaking economic activities, we must refer to or consider the credit system. Therefore, bankruptcy and business reorganization laws are important in creating investor confidence. For example, debtors with financial problems can continue to operate while debtors are restructured so that they return to be a business unit in the economic system that is able to produce and compete. With bankruptcy and business rehabilitation laws helping to preserve the value of the debtor's business with measures called Conditions of the automatic stay. Not only will it benefit the debtors and creditors only but also benefit the non-creditor as the employee of the debtor, trade receivables. For this reason, it can be said that the said law can promote, and support people interested in doing business. And is an important factor. Foreign investors have confidence in investing. Or choose to do business in Thailand. As noted by the United Nations Commission on International Trade Law (UNCITRAL) that if any bankruptcy proceedings lack good coordination between the court and the executing officer Assets that will be brought into force of the case would be lost, fraudulent or concealed. This not only affects the repayment of creditors only but still affecting the financial status of bankrupt companies as well as the ability to conduct business in the future. Because such laws can maintain social order and economic stability.

Among the major commercial activities of Thailand is one type Small and Medium Enterprises (also known as SMEs) The data from the Office of Small and Medium Enterprises Promotion (OSMEP) shows that in 2018, gross domestic product (GDP) from SMEs was worth 7,013,971 million baht, accounting for 43.0 percent of the country's total GDP. An increase of 42.4 percent from the previous year, with a growth rate of 5.0 percent, accelerating from an expansion of 4.8 percent last year. When considering the value of GDP according to the size of the enterprise, it is found that the small enterprise (SE) has the value of GDP equal to 5,010,991 million baht, representing 30.7 percent and the medium-sized enterprise (ME) has the value of GDP equal to 2,002,980 million baht, representing 12.3 percent. With the growth rate from the previous year equal to 5.4 and 3.9 percent respectively. SMEs play an important role in driving the economy of Thailand. If SMEs encounter financial problems with more debt than assets or the debtor is unable to pay the debt. For example, debtors do not have enough assets to liabilities. Or the debtor has the insufficient cash flow to pay the debt an effective bankruptcy law system requires a business rehabilitation law for SMEs to provide an alternative for SMEs to increase their ability and strength in trade competition for SMEs.

However, SMEs tend to have different characteristics. In carrying out a commercial business inevitably has financial problems or experiencing problems in trade and investment. Such as lack of funding sources, the competitive potential is small. Until the losses are in debt and there is a need to enter the business rehabilitation process. Business rehabilitation is a court process. In which the person requesting to bring the case to the court separately from the civil case or ordinary bankruptcy cases Is a means to solve economic problems and financial problems of receivables. So, the debtor can manage the business again Which the objective of the business rehabilitation is to enable the debtor's business to continue and the creditor has the right to receive more debt than the bankrupt debtor

Considering the problems and obstacles of debt restructuring, most SMEs are small businesses. And mostly Individuals not registered. Therefore, the opportunity for SMEs to enter the business rehabilitation process Therefore almost without condition the condition of the business that is not a limited company or public limited company. A small amount of capital would not have a chance to have a debt of 10 million. With the necessity, in 2016 onwards, the Bankruptcy Act (Issue 9) B.E. 2559 added the provisions on Rehabilitation of Small and Medium Enterprise Business. In summary, important principles regarding business rehabilitation of SMEs are as follows

1. Whether an individual, a group of people, or a partnership Can request a business rehabilitation If having the characteristics of being a legally SMEs at the same time, a limited company If having the characteristics of SMEs, then have the right to apply for business rehabilitation as a SMEs too.


2. The business rehabilitation process of SMEs is more concise than the normal business rehabilitation process. Because if rehabilitating the original business Must have a court order to rehabilitate the business first. Will then begin the process of creating and managing a rehabilitation plan. But in the business rehabilitation of SMEs, a business rehabilitation plan must be prepared first. and attached to the request for business rehabilitation. Which, if there is a reason for the business rehabilitation and the court agreed with the proposed plan the court will issue an order "To rehabilitate and agree with the plan" and lead to immediate plan management.

3. Define the definition of the debtor. According to the old business reorganization law, "Debtor" means a limited company, public company, and credit union cooperative only. There may be problems in the rehabilitation of the debtor's business or entrepreneurs of SMEs because SMEs do not set up an organization like a company only, but there are individuals, ordinary partnerships, unregistered and limited partnership

4. Who is eligible to apply for business rehabilitation for SMEs?

• Debtors which are persons, groups of persons, an ordinary partnership, not registered ordinary partnership Limited partnership and a limited company. That operates a business that is a small and medium enterprise that is registered with the Office of Small and Medium Enterprise Promotion
  
  
• Creditors arising from the business operations of the debtor, which may be one person, or many people combined. Debt arising from the business operations of the debtor is Debt that the debtor has created with the objective to use in the normal course of business of the debtor.

5. How much debt is available to the business rehabilitation application? Can be divided into the following cases

• In the case of the debtor is a natural person Must have a debt amount of 2 million baht or more
  
  
• In case of debtors in a group of persons Ordinary partnership not registered Ordinary partnership Limited partnership, limited company or other juristic people as specified in the ministerial regulations. Must have debt amounts of 3 million baht or more
  
  
• In case the debtor is a limited company Must have debt amounts from 3 million baht but less than 10 million baht

The business rehabilitation process of SMEs receivables is considered to help solve problems for debtors experiencing financial liquidity problems. To have the opportunity to rehabilitate the business and not being bankrupt. In order to preserve the business organization and allowing the business of the debtor to continue in which the creditor will receive equal pay as well as will lead to a positive effect on overall economic stability and strengthening the potential of SMEs

By Aungwara Chaianong