Indonesia has been grabbing headlines in recent months, but another Southeast Asian country, Thailand, should also be on the radar of lenders and restructuring professionals as stress is building in its economy.
On the macro front, the Thai economy has been weighed down by a combination of rising energy costs, falling tourist arrivals and political volatility.
Thailand recorded a current account deficit of USD 7.6 billion in April 2026, while overall household debt stands at 86.7% of gross domestic product, among the highest in Asia, Reuters reported.
The economic weakness is showing an impact on corporates and small and medium-sized enterprises (SMEs). Five listed Thai companies defaulted on a combined THB 546 million (USD 15.2 million) of debt in the first quarter of 2026, according to an S&P Global Ratings report dated 11 June 2026.
The fresh wave of defaults will weigh on the refinancing outlook for an upcoming THB 421 billion (USD 12 billion) in debenture maturities in the second half of 2026, S&P said, adding that it sees “continual fragility” among small borrowers and industries such as media, property and construction.
Banks and bondholders already turned risk-averse following large-ticket defaults in recent years, including a THB 39 billion (USD 1.1 billion) hit from defaulted industrial cable manufacturer Stark Corporation in 2023, according to S&P.
These cases will likely lead to further polarization in funding access, as “a flight to quality will steer capital away from SMEs,” the rating agency said.
Companies to Watch
🔸 Italian-Thai Development
The engineering and construction company’s bond restructuring earlier this year may have staved off a default, but the risks remained, S&P said. In January 2026, bondholders approved a three-year maturity extension and a higher coupon on THB 14.5 billion (USD 446 million) of debentures.
Even after the distressed-exchange agreement, ITD’s financial strains continued. The company reported a net loss of THB 221 million in the first quarter of 2026, adding to accumulated losses of THB 11 billion since 2020, according to S&P.
🔸 Hanuman Wind Power
Hanuman Wind Power, a Hong Kong-based unit of Thai renewable energy firm Energy Absolute, postponed a junk bond sale for a second time after failing to attract sufficient investor demand, Bloomberg reported on 11 June 2026. Part of the proceeds were earmarked to go to the parent company.
Hanuman’s aborted international bond debut – which offered a yield in the mid-to-high 9% range – came about five months after it pulled a similar transaction, according to Bloomberg.
Hanuman’s parent, Energy Absolute, has reportedly faced financial stress since Thailand’s market regulator accused its founder and other former executives of fraud two years ago.
People to Watch
Chandler Mori Hamada was named Thailand Law Firm of the Year at the 22nd Annual Asian Legal Business (ALB) SE Asia Law Awards 2026, according to its press release.
Jessada Sawatdipong, Chairman and Senior Partner, represented Chandler Mori Hamada at the awards ceremony in Singapore.
Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.