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59-569: Muang Thong Thani is connected to Chaeng Watthana , Tiwanon and Prachachuen roads (the last of which runs along the Bangkok–Nonthaburi border), and is served by the Si Rat and Udon Ratthaya expressways. The Pink Line monorail has an under-construction branch line that will directly connect to the Impact venues. Muang Thong Thani is also the site of Sukhothai Thammathirat Open University , and

118-409: A CCAA application gets finally rejected, the company in question can be forced into receivership or bankruptcy . This could happen for a number of reasons, chief among them being a failure to come to an agreement with creditors as to how to restructure the debt. Under Swiss law, debt restructuring may occur out of court, or through a court-mediated debt restructuring agreement that may provide for

177-467: A Division 1 Proposal and a CCAA filing. The former is available to both corporations and individuals who owe $ 250,000 or more to creditors. The latter is available only to larger companies owing more than $ 5 million to their creditors. A Division 1 Proposal is a last resort. Created by the Bankruptcy and Insolvency Act of 1985, the option to file Division 1 is not an option to be taken lightly as, in

236-415: A debt-for-equity swap, a company's creditors generally agree to cancel some or all of the debt in exchange for equity in the company. Debt for equity deals often occur when large companies run into serious financial trouble, and often result in these companies being taken over by their principal creditors. This is because both the debt and the remaining assets in these companies are so large that there

295-540: A dissenting minority is only possible under formal insolvency proceedings in Germany . As the incidence of corporate failures has increased in part due to current economic climate, so a more "standard" approach to restructuring has developed. Although every case has unique characteristics, the process of restructuring follows a number of important phases. Initially, declining financial performance will cause key financial covenants - for example, leverage ratios - along with

354-450: A downward spiral in the years leading up to 1986, pushing U.S. farmers' debts to levels above $ 200 billion. This 12th line of the U.S. Bankruptcy Code was initially added only as a temporary measure and remained as a temporary measure until 2005, when it became permanent. Chapter 12 was of great benefit to farmers, because Chapter 11 was often too expensive for family farms and generally only useful for sizeable corporations, while Chapter 13

413-637: A global reality. Debt restructuring involves reduction of debt and an extension of payment terms and is usually less expensive than bankruptcy . The main costs associated with debt restructuring are the time and effort spent negotiating with bankers, creditors, vendors, and tax authorities. In the United States, small business bankruptcy filings cost at least $ 50,000 in legal and court fees, and filing costs in excess of $ 100,000 are common. By some measures, only 20% of firms survive Chapter 11 bankruptcy filings. Historically, debt restructuring has been

472-504: A number of ways. In situations where every single impaired creditor of a firm agrees to a settled schedule of repayment, the plan formed is known as a "consensual plan." When a certain class a firm owes does not accept a restructuring plan, said plan may still be approved pursuant to the United States Bankruptcy Code. Such plans are colloquially referred to as "cramdown plans." Chapter 11 is considered to be one of

531-484: A partial waiver of debts, or for a liquidation of the debtor's assets by the creditors. The majority of debt restructuring within the United Kingdom is undertaken on a collaborative basis between the borrower and the creditors. Should this be unsatisfactory in the first instance, the court may be asked to mediate and appoint administrators. Among the most common forms of in-court debt restructuring for firms in

590-432: A primary way for small businesses to refinance in light of reduced lines of credit and direct borrowing. Debt mediation can be cost-effective for small businesses, help end or avoid litigation, and is preferable to filing for bankruptcy. While there are numerous companies providing restructuring for large corporations, there are few legitimate firms working for small businesses. Legitimate debt restructuring firms only work for

649-482: A regular housing estate complex, with land subdivided and sold mostly to individual homeowners. In 1989, at the height of Thailand's economic boom, Mongkol's son Anant Kanjanapas returned from Hong Kong to head the company, and announced a new vision: to develop Muang Thong Thani as a privately owned, self-contained satellite city along the lines of the new towns of Hong Kong , which would house up to 700,000 residents. The project aimed to capture demand resulting from

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708-1194: Is a national highway of Thailand , leading from the Bangkok suburb city of Pak Kret to Nakhon Ratchasima in the country's Northeast . It forms the main link between the eastern and northeastern regions, and is one of the major alternative routes into the Northeast (the main route from Bangkok being Mittraphap Road , Highway 2). The highway is known by several names along its route. Chaeng Watthana Road ( Thai : ถนนแจ้งวัฒนะ ) begins at Pak Kret in Nonthaburi Province , and leads eastward (and slightly south) to Lak Si Monument in Bangkok's Bang Khen District , where it crosses Phahon Yothin Road and from there becomes known as Ram Inthra Road ( ถนนรามอินทรา , also spelled Ramindra ) until it reaches Min Buri in Bangkok's eastern fringes. It then becomes known as Suwinthawong Road ( ถนนสุวินทวงศ์ ) towards

767-434: Is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations. Replacement of old debt by new debt when not under financial distress is called " refinancing ". Out-of-court restructurings , also known as workout s , are increasingly becoming

826-520: Is appointed by the court to run the business until all bankruptcy proceedings are completed. Chapter 12 Bankruptcy is a form of debt restructuring in the United States available to farms and fisheries exclusively; said businesses could be family-owned or owned by corporations. The special debt restructuring rights accorded to farmers and fisheries consequent line 12 of the United States Bankruptcy Code were first granted by Congress in 1986 amid an agricultural debt crisis. Food commodity prices were caught in

885-624: Is here near the Prachachuen entrance/exit, and there are also a few other small primary schools and kindergartens within the wider development. Nearer to Tiwanon Road from Impact are the Double Lake Condominiums, higher-end eight-storey apartment buildings launched by Bangkok Land in 2012. The Muang Thong Thani area also contains residential projects by other developers who acquired properties that had been relinquished by Bangkok Land in its debt-restructuring process, including

944-637: Is home to the Muangthong United Football Club . Muang Thong Thani was developed from extensive land banks built up by Mongkol Kanjanapas , founder of the Bangkok Land Company, over the 1970s. Back then, the area, on the northern outskirts of Bangkok , not far from Don Mueang International Airport and mainly served by Chaeng Watthana Road , was mostly undeveloped and dominated by paddy fields. Mongkol amassed about 4,500 rai (720 ha; 1,800 acres) of land in

1003-600: Is lined by developments of the satellite city project: on one side are the Lake View Condominiums—twenty-four 30-storey residential towers overlooking an artificial lake (some of which remain unfinished)—and on the other are the Villa Offices—ninety 5-storey commercial buildings intended for office/retail/residential mixed-use. On the other side of the second main road lie the Impact, Muang Thong Thani complex and several retail developments, along with

1062-445: Is no advantage for the creditors to drive the company into bankruptcy. Instead the creditors prefer to take control of the business as a going concern . As a consequence, the original shareholders' stake in the company is generally significantly diluted in these deals and may be entirely eliminated, as is typical in a Chapter 11 bankruptcy . Agreements to swap debt for equity also often occur because companies are obliged to comply, per

1121-449: Is no reason that American taxpayers should be doing this". He wrote that reducing bank debt levels by converting debt into equity will increase confidence in the financial system. He believes that addressing bank solvency in this way would help address credit market liquidity issues. Economist Jeffrey Sachs has also argued in favor of such haircuts: "The cheaper and more equitable way would be to make shareholders and bank bondholders take

1180-537: Is simultaneously increased. Investors can then have more confidence that the bank (and financial system more broadly) is solvent, helping unfreeze credit markets. Taxpayers do not have to contribute dollars and the government may be able to just provide guarantees in the short term to buttress confidence in the recapitalized institution. For example, Wells Fargo owed its bondholders $ 267 billion, according to its 2008 annual report. A 20% haircut would reduce this debt by about $ 54 billion, creating an equal amount of equity in

1239-438: The 1997 Asian financial crisis , with $ 1 billion of debt—a rise and fall that epitomizes the unrestrained borrowing and speculation that led to the crisis. Mike Douglass and Pornpan Boonchuen in 2006 called it "one of the greatest planning disasters of the 20th century". However, the family was able to enter into debt restructuring plans that allowed them to retain control of the company. The company had also been helped by

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1298-517: The Companies' Creditors Arrangement Act , a piece of legislation first put forward and passed in 1933 and updated later in 1985. A CCAA filing allows a Canadian company to have a window in time (typically between 30 and 90 days) in which they can renegotiate and reorganize their debt payment plans with creditors. During this brief period, creditors cannot seize any money that is owed to them. These windows of time may be renewed multiple times over. Once

1357-522: The Pak Kret District of Nonthaburi Province, within the city municipality of Pak Kret . The development has two roughly parallel main streets, which link between Chaeng Watthana and Tiwanon roads: Soi Chaeng Watthana–Pak Kret 33 ( ซอยแจ้งวัฒนะ-ปากเกร็ด 33 ), the original main street belonging to the initial development, is also known as Bond Street, a name used to promote the satellite city project, while Soi Chaeng Watthana–Pak Kret 39 serves as

1416-748: The United States Army to support the USAF bases in Thailand during the Vietnam War . The road, which cuts through the Dong Phayayen–Khao Yai Forest Complex World Heritage Site, underwent expansion into a four-lane highway from 2015 to 2018, which included the construction of bridges and underpasses to serve as wildlife corridors , the first in Thailand. Debt restructuring Debt restructuring

1475-651: The Victory Monument in Bangkok, serve as the main modes of public transport to Muang Thong Thani. Of the eight Industry Condominiums, those that are occupied have been converted to office use, including by the Defence Technology Institute and Kasikornbank . The Popular Condominiums consist of twenty-seven 16-storey apartment blocks, each housing about 1,000 units. Originally marketed to teachers and civil servants, they now mostly house lower-middle income tenants. St. Francis Xavier School

1534-707: The Asian Games and continues northward from Si Rat, has entrance/exit ramps directly inside Muang Thong Thani. The original housing estate projects are clustered around Bond Street, which is lined by older shophouses near its Chaeng Watthana end. Further down lie Sukhothai Thammathirat Open University (STOU), the Department of Lands office, and the Buddhist temple Wat Phasuk Maneechak. Beehive Lifestyle Mall—a two-storey community shopping centre—opened opposite STOU in 2014. From near its midpoint to Tiwanon, Bond Street

1593-715: The Impact Tennis Academy (the Lawn Tennis Association now occupies a newer venue next to Wat Phasuk). More recent developments include the Novotel and Ibis hotels, a small satellite campus of Silpakorn University , and the Cosmo Bazaar mall, which features a cinema and also serves as a public minibus van station. The minibuses, along with the BMTA 166 bus line which terminates nearby and at

1652-776: The M Society Condominiums funded by Singapore-based Real Estate Capital Asia Partners, which redeveloped three of the unfinished Lake View towers in 2011, and several housing estates by Pruksa Real Estate . An extensive police office complex, initially planned as the Central Investigation Bureau headquarters but now used by the Immigration Bureau, lies next to Thunder Dome near the Impact complex. Third-party residential developments Organizations 13°55′00″N 100°32′30″E  /  13.91667°N 100.54167°E  / 13.91667; 100.54167 Chaeng Watthana Road Highway 304

1711-824: The Popular Condominiums and the flatted factories, which are titled the Industry Condominiums. In the vicinity of Impact are the Thunderdome Stadium (home to the Muangthong United Football Club ) and Thunder Dome, both of which are also former Asian Games venues, but are owned by the Sports Authority of Thailand . Also from the Asian Games are tennis courts which were used by the Lawn Tennis Association of Thailand from 1999 to 2004, but are now operated by

1770-399: The United States are Chapter 11 and Chapter 12 bankruptcy. Under Chapter 11, firms form a plan to reorganize their credit obligations, such that they are able to continue operating while they are going through with their debt repayment plans and after they become solvent. Creditors are given promises to be paid back with firms' future earnings. The nature of these promises can be shaped in

1829-450: The amount by which any resale value, when the house is resold, exceeds $ 135,000. A debt-for-equity swap may also be called a "bondholder haircut ". Bondholder haircuts at large banks were advocated as a potential solution for the subprime mortgage crisis by prominent economists: Economist Joseph Stiglitz testified that bank bailouts "are really bailouts not of the enterprises but of the shareholders and especially bondholders. There

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1888-416: The area, which he bought at prices of about 40,000 baht per rai (US$ 10,000/ha, $ 4,000/acre). Bangkok rapidly grew throughout the 1980s, and by the late 1980s, prices had risen two-hundredfold to 20,000 baht per square wa or 8 million per rai ($ 50 million/ha, $ 20 million/acre), allowing the company to profit greatly from land development. Muang Thong Thani was initially developed from 1978 as

1947-489: The buildings' street-facing ground floors. However, Muang Thong Thani remained primarily residential and never achieved economic self-containment, most of its residents commuting for outside work, especially in Bangkok. As Bangkok Land's finances improved, especially since 2012 when it exited debt restructuring, it has engaged in a new, more measured wave of construction, focusing on shopping malls and retail complexes aimed at capturing local and visitor spending. From 2018 to 2020,

2006-505: The city of Nakhon Ratchasima. Part of the highway is designated as Asian Highway 19 . The road was constructed in segments. The Chaeng Watthana and Suwinthawong sections were named in 1950, while the section from Chachoengsao to Nakhon Ratchasima (originally designated Highway 23) was built from 1941, and was initially unpaved. The Kabin Buri–Nakhon Ratchasima section was built and paved from 1965 to 1968 with assistance from

2065-414: The company's underlying cash position to become tight and the prospect of the company needing to restructure will become more obvious to creditors and the debtor alike. This triggers a gathering of creditors and other stakeholders, in anticipation of a breach of financial covenants , a crisis of liquidity , or impending debt instruments coming due that will not be able to be refinanced, all of which could be

2124-482: The construction undertaken by France-based Bouygues-Thai . Enabled by financial liberalization policies by the Bank of Thailand that opened up capital markets to foreign funds, the project was enthusiastically supported by investors and proceeded at incredible speed—an entire city arising out of the ground within a few years. The development also appears to have benefited from government support, including modifications of

2183-443: The creditors' votes set in proportion to how much they are owed, and 50% plus one of all creditors votes in terms of number of creditors. On top of such democratic approval, the court itself has to approve how the debts get restructured. Withstanding all such approval, a business or individual can continue operating as normal; otherwise, a business or individual is obliged to proceed into bankruptcy filing. CCAA filings were created by

2242-436: The debtor client (not as a debt collection agency ) and should charge fees based on success. Among the debt situations that can be worked out in business-to-business debt mediation are: lawsuits and judgments, delinquent property, machinery, equipment rentals/leases, business loans or mortgage on business property, capital payments due for improvements/construction, invoices and statements, disputed bills and problem debts. In

2301-521: The debtor, or for a liquidation of certain debtor's assets to repay privileged creditors. While being famous for its efficiency in other matter, this is not true for debt restructuring. Many German companies prefer to restructure their debts using the English scheme of arrangement proceedings because they believe that the German restructuring law is not very helpful. The main reason for this is that binding

2360-459: The emerging Thai middle class and Bangkok's rapid growth, as well as the impending handover of Hong Kong in 1997, which was expected to trigger waves of migration. A flurry of construction began, and the company built dozens of high-rise luxury condominium towers, mid-rise apartment blocks, office and retail buildings, and flatted factories for light industry. The entire development was designed by Australian architectural firm Nation Fender , and

2419-407: The event that the stipulations within the proposal get voted down by creditors or not signed off by the court, one falls into bankruptcy. Division 1 proposals allow companies to be briefly relieved of lawsuits by creditors, as well as they allow companies to stop paying money to their unsecured creditors while the proposal is being reviewed. A Division 1 Proposal to restructure debts must secure 66% of

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2478-516: The family successfully pushed for the approval of a branch line of the Pink Line monorail into Muang Thong Thani, directly serving the Impact complex. The Pink Line, which runs along Chaeng Watthana Road, had in 2017 been awarded to a joint venture led by BTS Group Holdings , another major holding of the family. Muang Thong Thani covers areas in Ban Mai, Bang Phut and Khlong Kluea subdistricts of

2537-484: The games' conclusion, the venue was converted to an exhibition and convention centre complex titled Impact, Muang Thong Thani . With private demand still low following the crisis, Anant worked to promote the centre and lobbied for it to be chosen for government events, including the Board of Investment 's BOI Fair in 2000, which began to bring in a steady stream of revenue. The complex was gradually expanded, becoming one of

2596-558: The government Department of Lands and electrical substations. By the mid 1990s, the oversupplied real estate market was beginning to collapse, and construction in Muang Thong Thani came to a halt as buyers—mostly driven by speculation and not actual demand—defaulted on payments, leaving Bangkok Land short of cash and with thousands of units it was unable to sell. The company, valued at $ 5.2 billion following its public listing in 1992, dropped in value to $ 36 million after

2655-432: The hit rather than the taxpayer. The Fed and other bank regulators would insist that bad loans be written down on the books. Bondholders would take haircuts, but these losses are already priced into deeply discounted bond prices." If the key issue is bank solvency, converting debt to equity via bondholder haircuts presents an elegant solution to the problem. Not only is debt reduced along with interest payments, but equity

2714-411: The impetus for a bankruptcy taking place if not rectified. The lending group (typically comprising corporate finance divisions of banks) will normally commission a corporate advisory group to review the business and its financial position. This will form the basis of any restructuring of facilities. The lending group will typically appoint a Corporate Restructuring Officer (CRO) to assist management in

2773-556: The land-use plan for Nonthaburi Province and the placement of the terminal ramp of the Si Rat Expressway , which opened in 1993, right next to Muang Thong Thani's entrance, connecting it to the inner city and boosting the project's value. The family is known for lobbying through political connections and public gifts—Mongkol had donated land in Muang Thong Thani for the establishment of Sukhothai Thammathirat Open University in 1981, and donations were also made for an office of

2832-476: The largest convention centres in Southeast Asia. While the crisis left the luxury projects mostly empty, as well as the commercial buildings, the low-cost Popular Condominiums near the Impact complex attracted many buyers, and came to house a population of up to 75,000 in 2000, according to Anant. The area developed into a large urban community with an active street life, with shops and restaurants filling

2891-478: The main entrance to the Impact complex from Chaeng Watthana Road. A pair of parallel crossing streets link the two, and serve the Impact complex and Popular Condominiums, beyond which the streets connect to Prachachuen Road, which runs along the Bangkok–Nonthaburi border. The Si Rat Expressway provides access from Chaeng Watthana Road, while the Udon Ratthaya Expressway , which was constructed for

2950-404: The most expensive and complicated forms of bankruptcy to file. The vast majority of Chapter 11 bankruptcy cases filed end up allowing company management to go forward running the business as usual; however, in certain exceptional cases (fraud, gross incompetence, etc.) the courts do not allow the business the privilege of simply maintaining a " debtor in possession " status. In said cases, a trustee

3009-728: The payments you agree. If you do fall behind with the payments and the enforcement officer has seized goods, they may remove them to the sale room for auction. Subchapter V in the US was created in 2019 by the Small Business Reorganization Act (SBRA). It offers accelerated deadlines and the speed with which the plan is confirmed reduces cost. Congress temporarily increased the ceiling of maximum funded debt eligibility to $ 7.5mm during COVID-19, and extended it in 2022. Two common avenues for restructuring debt exist in Canada:

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3068-466: The process, thereby recapitalizing the bank significantly. Most defendants who cannot pay the enforcement officer in full at once enter into negotiations with the officer to pay by installments. This process is informal but cheaper and quicker than an application to the court. Payment by this method relies on the cooperation of the creditor and the enforcement officer. It is therefore important not to offer more than you can afford or to fall behind with

3127-564: The province of large corporations with financial wherewithal. In the Great Recession that began with the financial crisis of 2007–08 , a component of debt restructuring called debt mediation emerged for small businesses (with revenues under $ 5 million). Like debt restructuring, debt mediation is a business-to-business activity and should not be considered the same as individual debt reduction involving credit cards , unpaid taxes, and defaulted mortgages. In 2010 debt mediation has become

3186-532: The purpose of evading the costly legal fees associated with Chapter 11. The decision as to whether to enter a workout or take the issue into court is, in large a part, a function of the creditors' and debtors' respective perceptions of how much can be gained or lost through a Chapter 11 proceeding. Creditors know that once Chapter 11 has commenced, a degree of negotiating leverage is lost, as judicial authorities may impose alterations of claims without regard to creditors' consent. On numerous occasions, merely throwing out

3245-553: The sale of a few entire blocks to the Ministry of Defence in 1996 and early 1997, which raised questions of bribery. The 1998 Asian Games in Bangkok proved a turning point for the project, which, before the crisis, had been chosen as one of its venues. Despite the company's financial problems, it completed the Muang Thong Thani Sports Complex for the games, though with barely time to spare. Following

3304-425: The terms of a contract with certain lending institutions, with specified debt to equity ratios . Debt-for-equity swaps are one way of dealing with sub-prime mortgages. A householder unable to service his debt on a $ 180,000 mortgage for example, may by agreement with his bank have the value of the mortgage reduced (say to $ 135,000 or 75% of the house's current value), in return for which the bank will receive 50% of

3363-571: The threat of filing bankruptcy has initiated the process of coming to a private agreement. Debt restructuring within Italy may occur either out of court (ex article 167 of the Italian Bankruptcy Law) when a waiver or simple debt rescheduling is required, or through a court-mediated debt restructuring agreement (ex article 182/bis of the Italian Bankruptcy Law) and may provide for a partial waiver of debts, mandatory recapitalization of

3422-660: The town of Chachoengsao . From there, it continues mostly northeastward through the eastern province of the same name , past the town of Phanom Sarakham , then enters Prachin Buri Province where it crosses Highway 33 at Kabin Buri town. It then leads north, crossing the Sankamphaeng Mountains through a pass between Khao Yai and Thap Lan national parks into Nakhon Ratchasima Province . There, it passes through Wang Nam Khio and Pak Thong Chai districts before joining Mittraphap Road as it enters

3481-511: Was mainly of use to individuals attempting to restructure very small debts. Farms and fisheries, being midsize and seasonal in nature, were thus in need of a more flexible legal framework through which they could restructure their debts. Firms in the United States are not limited to only using the legal system to manage debts they are incapable of repaying. Out-of-court restructuring, or workouts, constitute consensual agreements between firms and their creditors to adjust debt obligations, mainly for

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