  We argue that an extension of the Minimal Supersymmetric Standard Model that
gives rise to viable thermal inflation, and so does not suffer from a
Polonyi/moduli problem, should contain right-handed neutrinos which acquire
their masses due to the vacuum expectation value of the flaton that drives
thermal inflation. This strongly disfavours SO(10) Grand Unified Theories. The
$\mu$-term of the MSSM should also arise due to the vev of the flaton. With the
extra assumption that $ m_L^2 - m_{H_u}^2 < 0 $, but of course $ m_L^2 -
m_{H_u}^2 + |\mu|^2 > 0 $, we show that a complicated Affleck-Dine type of
baryogenesis employing an $LH_u$ $D$-flat direction can naturally generate the
baryon asymmetry of the Universe.
