Page 39 - BAM ONE REPORT 2564 (ENGLISH VERSION)
P. 39
Form 56-1 One Report 2021
Bangkok Commercial Asset Management Public Co., Ltd. 37
(3) Debt restructuring
The following flow chart depicts the Company’s process for NPLs management and debt restructuring
Issue invitation to debtors/
guarantors/ mortgagors/
pledgors
Debtors contact the Company within the specified period Debtors don’t contact the Company within the specified period
Negotiate the debt restructuring
A conclusion
is not reached
Judicial Process
The dispute is settled The dispute is not settled
A conclusion is reached Initiate a compulsory
Restructuring the debt
performance and put
Prepare the debt compromise the collateral out for auction
document, debt restructuring
agreement, and related documents
The company wins the bid Third parties win the bid
Payment made by Payment made by NPAs Cash
Payment made transferring of the the conversion of
in cash collateral/ assets debts into equity
When the Company purchases the NPLs from the financial institutions, the Company will contact the debtors,
guarantors, pledgers and mortgagers of the Company’s ownership of the debts.
When the Company contacts the debtors, it will invite the debtors into negotiation with the Company to enter
the debt restructuring process. In case of not being able to reach the debtors, the guarantors, mortgagors, and pledgors,
the Company will enter the court proceedings with such debtors. For debtors with incompleted debt restructuring,
the debt restructuring process will be carried out together with the court proceedings to create the condition of
collateral foreclosure with objectives to reduce the operating time for debt settlement.
For debt restructuring, the Company will evaluate the collaterals and repayment ability of the debtors. The
Company considers various factors such as salary, occupation, business type and existence of the such debt guarantee.
Furthermore, the Company will consider options in the debt restructuring process which includes A) agreement on
debt settlement by adjusting conditions of repayment such as extending term of debt settlement, reducing interest
rate and/or principal amount, (B) transferring collateral/ repayment property and (C) the conversion of debts into
equity. These are the methods the Company uses in the debt restructuring process depending on repayment ability
of each debtor.
