FACTORS CONDUCIVE TO THE BUSINESS REHABILITATION OF SMALL AND MEDIUM ENTERPRISES DEBTORS UNDER THE BANKRUPTCY ACT (NO9), BE 2016

Abstract

The objectives of this research were 1) to study the problems and obstacles of business rehabilitation of SMEs and 2) to study the factors conducive to the rehabilitation of SMEs debtors. This research is a qualitative research by analyzing the data from the documents. The tools used are in-depth interviews by selecting a specific sample group. There were 20 key informants which were 1) persons working in the Central Bankruptcy Court and the Legal Execution Department, 2) scholars and 3) the stakeholders in the case. Another research tool is a small group meeting from 10 key informants. The data was analyzed by describing and summarizing the overview. The results of the research were found: 1) Problems and obstacles in business rehabilitation of small and medium-sized enterprise debtors: 1.1) The definition of debtor. 1.2) determination of the minimum and maximum amount of debts. 1.3) requirement of the applicant for business rehabilitation to attach a business rehabilitation plan. 1.4) entering the business rehabilitation process too late 1.5) debtors do not have a way to rehabilitate their business. 1.6) business rehabilitation is a complicated and costly process. 1.7) The rehabilitation process has no incentives for creditors. 2) Factors conducive to the rehabilitation of small and medium-sized enterprises debtors include: 2.1) determination the definition of new debtors 2.2) repealment the minimum amount of debt and Advanced 2.3) determination the option for the debtor to file a business rehabilitation plan after the court orders the business reorganization. 2.4) there should be an agency or person with expertise as a mechanism to assist debtors. 2.5) amendment the additional legal provisions in the event that the business reorganization is unsuccessful. The court may order the debtor's absolute receivership. 2.6) Business rehabilitation laws should be publicized to be widely distributed.