Thailand - Earthquake Provides A Wake Up Call on Safety

March 31, 2025 Edward Dever

The earthquake in Myanmar on 28 March which also rattled Bangkok was a wild ride.

With some exceptions, including the construction site near Chatuchak, Bangkok emerged relatively unscathed. The devastation in Myanmar is a different story.

In the days and weeks ahead, we are likely to see further examples of building damage as inspections are completed.

Bangkok is quite well known for feeling the effects of earthquakes in places such as Myanmar or Indonesia. Normally, the impact is minimal. Friday's quake was the strongest by far for many years. Past earthquakes of similar intensity caused by the Sagaing Fault in Myanmar were recorded in 1839 and 1930.

Post-earthquake, building safety standards and evacuation procedures may come into focus.

On one restructuring a number of years ago, we implemented a rigorous approach to workplace safety, particularly in relation to building evacuations.

For the Head Office on the 35th floor in Bangkok, we looked at examples of companies involved in the collapse of the Twin Towers on 9/11. Some of the companies that had been affected by the 1993 basement bombing of the WTC North Tower subsequently had very strict evacuation procedures in place which assisted evacuations on 9/11. In one case, the company fitted backpacks to the back of employees' chairs containing a face mask, light and bottle of water. Another company made evacuation mandatory if there was an incident involving the other tower.

We implemented a multi-pronged approach to improving employee safety which included:

- a company-specific evacuation drill independent of the annual building drill.

- walking all fire stairs periodically to ensure there were no blockages.

- ensuring office emergency exit signs had working light bulbs so they would illuminate in the event of a power outage.

- educating employees on how many emergency exits there were and splitting the office into zones to ensure the use of all exits on an evacuation.

- placing employee lists at emergency exits so fire wardens could complete headcounts at ground level.

- storing glow sticks at emergency exits to use in case of stairwell lighting failure.

- instructing employees not to listen to anyone on the fire stairs advising them to return to their office. It was compulsory to go to the ground level and wait for an update from the company's fire wardens.

We also conducted reviews of all other offices and implemented procedures to improve safety standards. One could never rule out a fire or other incident occurring but, by improving safety standards, we could improve the chances of all employees being safely evacuated.

In the case of the Head Office, I thought it was more likely that it would be hit by an errant Government helicopter passing through the nearby air traffic corridor than a fire. We planned for a number of possible scenarios.

BBC News - Water spills from rooftop pool as Bangkok building sways

March 2025

The content of this publication is intended to provide a general overview on matters which may be of interest. It is not intended to be comprehensive. It does not constitute advice in relation to particular circumstances nor does it constitute the provision of legal services, legal advice or financial product advice.

Thai Airways Works On Easier Option For Ticket Holders Who Requested Refunds

June 26, 2020 Edward Dever

Thai Airways has indicated that it is trying to create a solution to the prospect of over 300,000 ticket holders who have requested refunds needing to file debt repayment claims in Bangkok.

The Thai Bankruptcy Act provides that creditors are required to file claims within one month of publication of the planner's appointment in the Government Gazette. Failure to file a claim generally means all rights are lost.

THAI has apparently discussed this issue with the proposed planner and expects to announce its approach once the planner is appointed, expected in August.

Hopefully good news for THAI customers who have requested refunds, particularly those based outside Thailand who faced the prospect of needing to file claims with the Bankruptcy Court in Bangkok as well as have their documentation appropriately notarised and legalised.

THAI has also clarified that Royal Orchid Plus frequent flyer members with points balances do not need to file debt repayment claims in relation to their points. Also, ticket holders whose tickets remain unused do not need to file claims. Tickets remain valid for use in the future.

Clarification regarding the notification of the Central Bankruptcy Court, Thailand (THAI Business Reorganization)

June 2020

Presentation Slums Mission Bangkok - Plaque Presentation - January 2020

January 21, 2020 Edward Dever

Brian Cranston's character, Jack O'Donnell, in the film Argo says at one point: "If we wanted applause, we would have joined the circus."

It is a sentiment I often agree with. However, the recognition of my efforts over many years by the Presentation Sisters is happily accepted.

The plaque was presented at a breakfast recently at the Sofitel Hotel in Bangkok.

A less known fact - apart from all the mission work they do in Asia and other places, the Presentation Sisters operate 141 schools in Australia and four in New Zealand.

All the volunteers who helped Sister Joan and her Presentation Slums Mission Bangkok over the years were able to witness something quite special.

PELEN

January 2020

Thailand - 20 Years After The 1997 Financial Crisis

July 5, 2017 Edward Dever

Sunday July 2, 2017 marked the 20th anniversary of the floating of Thailand’s currency, the baht. This event is widely regarded as triggering the Asian Economic Crisis of 1997 throughout South East Asia engulfing the economies of Thailand, South Korea, Indonesia and the Philippines.

Known as the Tom Yum Gung crisis in Thailand, floating the currency was one of the final acts of a government which had exhausted the country’s foreign currency reserves in an ill-fated attempt to shore up the baht against waves of selling and protect a finance sector riddled with substandard loans.

At its low point in January 1998, the baht slumped to around 56 baht to the US dollar. The banking sector and most major corporations with significant foreign currency borrowings were insolvent. The International Monetary Fund coordinated a bail out which was later criticised for the austerity measures it imposed on the Thai government.

In Bangkok, one of the Mercedes-Benz dealers initiated what became known as the “Market for the Formerly Rich”. Buyers sifted through an array of luxury cars, jewellery and other boom time badges of opulence, heavily discounted to raise cash for those who had lost jobs or money on stock market investments.

A number of banks and over fifty finance companies were closed or merged with other institutions. Sales of loan portfolios and other bank assets were organised. Lehman Brothers, which itself collapsed in 2008, was heavily involved in this asset sell off.

Twenty years on, it may come as a surprise to learn that a number of the main banks and major conglomerates are still controlled by the same pre-1997 family groups. The ability to retain control in the face of extreme financial adversity is due to two main factors: the debtor-friendly legal system in Thailand and the tenacity and negotiation skills of these families and their executives.

In 1997, there was no formal rehabilitation procedure for companies. A rehabilitation amendment was added to the Bankruptcy Act in 1998. At the time, bankruptcy was considered an option in only a few rare cases. Insolvency was determined by a company’s historical balance sheet rather than the more realistic liquidity test. Restructurings were often completed outside the court process although, for a time, the Bank of Thailand assisted in coordinating meetings of companies and their creditors.

Companies often took an extremely hostile approach to restructuring with a number of debt standstill arrangements taking over a year to negotiate. Thai executives believed lengthy delays would allow negotiations to be finalised in a more favourable exchange rate climate. In many cases, they were correct.

In the years following restructuring, many Thai companies have taken a more conservative approach to debt, particularly unhedged foreign currency debt. They have also expanded beyond Thailand with investments in neighbouring countries and further afield in places such as Australia. Part of the rationale for this diversification would be the lacklustre Thai economy, particularly in the past ten years or so as Thailand has struggled under political uncertainty and military rule.

Should the events of 1997 be revisited, it is doubtful that creditors would fare any better. While the rehabilitation law remains in place, debtors would once again have the upper hand in any negotiations. Directors of companies in Thailand are generally not personally liable if a company trades while insolvent. So there is no incentive for companies to use the rehabilitation procedure. Tossing a set of the factory keys across the desk to your creditors, particularly foreign creditors, and asking them to take over the business would remain a highly effective means of retaining control and negotiating a favourable outcome.

In these circumstances, the restructuring era adage that, in practice, equity in Thailand ranks somewhere above unsecured debt and often above secured debt is likely to hold true once again.

PELEN

July 2017