The comparison between the city of Detroit bankruptcy under the US bankruptcy code and the debt management of Bangkok Metropolis

Abstract

The debt problem caused by the Green Line Sky Train Project that Bangkok Metropolis has been facing is one of the most critical problems that needs to be resolved urgently. This problem inspired the researcher to study the documents to find out how Bangkok Metropolis, as a legal person and local administrative organization, plans for its debt management and what the nature of organization and property management enacted in Bangkok Metropolis Administration Act A.D.1985 is. This article compared and summarized the differences between Thai and American laws on debt management. The study found that while the United States of America has Chapter 9 of the United States Bankruptcy Code, Thailand lacks the law helping with debt management. Therefore, to resolve the Bangkok Metropolis debt problem and to set the legal standard on organization and property management, the study deems it appropriate to apply Chapter 9 as the essential law to set the management criteria based on the Thai context. Moreover, this application will help reduce the burden of the Thai Government in budgeting the annual government statement of expenditure for the disbursement of the local administrative organizations.