Over the past 2-3 years, Thailand's bond market has faced continuous bad news, with listed companies requesting payment delays or outright defaulting. May 2026 is particularly severe, with five listed companies stumbling and announcing defaults totaling more than 546 million baht.
However, bondholders should not assume their holdings are immediately worthless. Thairath Money invites everyone to understand the current bond market situation in Thailand and how to plan if you hold these bonds.
Here is the latest update on the five listed companies reporting to the Stock Exchange of Thailand (SET) that are facing serious problems.
1. RS Public Company Limited (RS) The longstanding Thai music label admitted to defaulting on debt with a financial institution due to insufficient cash flow, failing to pay over 317 million baht in promissory notes. They are currently negotiating revised payment terms.
2. Mono Next Public Company Limited (MONO) The familiar TV media company announced a default on a Letter of Credit guarantee exceeding 284 million baht and missed payments on long-term bank loans. Debt restructuring negotiations are underway.
3. Property Perfect Public Company Limited (PF) The real estate firm reported defaulting on interest payments across five bond series totaling 760,035.57 baht due to liquidity shortages amid a sluggish property market. Although planning asset sales, payments have not yet been made.
4. East Coast Furnitech Public Company Limited (ECF) Announced defaults on seven bond series. Their main plan is to sell assets to cover principal and interest, expecting to sell ECF Power shares first.
5. Grand Asset Hotels and Property Public Company Limited (GRAND) Defaulted on principal and interest payments for GRAND259B bond's first installment after previously requesting a payment extension. On 27 May 2026 GMT+7, no payment was made as cash flow from asset sales was awaited. The payment was postponed to 5 June 2026 GMT+7, including default interest.
Recently, Finnomena reported that Thailand's prolonged low economic growth and high household debt have reduced consumer purchasing power. Banks have tightened lending, making loans harder to obtain. Many companies have turned to bond issuance, sometimes without credit ratings (Non-rated), which carry higher risk than rated bonds.
With a weak economy, some sectors face specific liquidity issues. For example, real estate developers who borrowed to build projects but face slow sales struggle to manage cash flow. Meanwhile, media and entertainment sectors have been affected since COVID-19 and face disruption from new platforms, reducing cash flow.
This has led to defaults by five companies: RS and MONO (media sector defaults on bank debt) and PF, ECF, GRAND (bond defaults). Additionally, two companies are being "watched" as they work on restructuring and extending bond maturities:
Sahakol Equipment Public Company Limited (SQ) A mining contractor currently holding bondholder meetings to seek revised payment terms and collateral changes.
Richy Place 2002 Public Company Limited (Richy) A real estate business issuing Non-rated bonds. The SET has placed the ICB warning sign on four bond series to alert investors about business risks and to encourage participation in bondholder meetings to extend maturities and adjust terms.
Although Richy and SQ have positive cash flow from operations in their financials, their businesses require large capital expenditures for construction or mining equipment. Failure to issue replacement bonds poses immediate liquidity risks.
Kasikorn Securities recommends four essential steps for bondholders facing defaults.
1. Locate your bond certificate Since the bond certificate proves your claim, whether in paper or digital form, keep it safe once received.
2. Identify who the "bondholders' representative" is The representative protects bondholders' interests, ensuring the issuer complies with terms. In default cases, the representative manages issues, calls bondholder meetings, monitors news, or may initiate legal action.
3. Know your bond type and series Different bonds have varying repayment conditions. For example, if the issuing company declares bankruptcy, bondholders are considered "creditors" and have priority over common shareholders, who are owners and paid last.
4. Stay informed about developments such as the default status, bondholder meetings, or if the case proceeds to rehabilitation or bankruptcy, so you can plan accordingly.
Finally, bonds remain a consistent return asset if the issuer does not default. Before buying, thoroughly evaluate interest rates, duration, and company risk. Also, consider your own risk tolerance if unexpected events occur.
References: SET, Finomena, Kasikorn Securities
Note
There are two types of default:
Technical Default Occurs when the issuer breaches contract terms, often leading to bondholder meetings to decide whether to allow amendments. If investors vote "no" and demand immediate repayment before maturity (Call Default), it is a technical default.
Actual Payment Default Happens when the issuer cannot or refuses to pay principal or interest on the due date. The bondholder representative must demand payment, possibly initiate legal action or call bondholder meetings to seek repayment or file claims for damages.
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