Transcript of the above video:

As the title of this video suggests, we are discussing acquiring a Thai Company and dealing with issues associated with due diligence and the possibility of that Company having outstanding loans; so that Company may owe money to a creditor and you are looking to buy that Company. Ascertaining that Company's status with respect any outstanding debts is a really good idea. 

Now due diligence, especially in a legal context may only go so far. There may be things that are out there kind of in a sense, sort of wild loans, it is not really the way I look at it. In a property context, you sometimes call it "wild title" where there may be a deed out there that you are not fully aware of with respect to a title search. In a sense due diligence, especially in the context of corporate acquisition may not be exhaustive. In fact, often times it is impossible to be completely exhaustive.

That said, Corporate due diligence can go a long way in ascertaining not only the corporate compliance, status the posture of that company, but also whether or not there might be and in some cases specially with respect to audited financial statements, it may be possible to see that “oh there at least was a loan”, you have got to ascertain if it has been paid off and/or if it is still outstanding how you are going to deal with that with respect to the overall acquisition.