Tiếng Việt
English
SUBCRIBE NEWSLETTER
Newsletter
Search
question and answer
Hit counter    |
Users online |
Page loadtime |
|
PART VI
|
|
Bankruptcy of companies in Vietnam is governed by the 2004 Bankruptcy Law and other relevant regulations.
Enterprises incapable of repaying their due debts at creditors’ request are alleged to fall in bankrupt state. |
|
1. The stages for carrying out bankruptcy procedures
|
The bankruptcy procedures applicable to enterprises which fall into the state of bankruptcy are as follows:
- The submission of applications for, and opening of bankruptcy procedures; - The restoration of business operation; - The liquidation of properties, debts; - The declaration of bankruptcy of the company. |
|
2. Application for opening bankruptcy procedures
|
Unguaranteed or partially guaranteed creditors, representatives of the employees or trade union representatives, shareholders or groups of shareholders of a joint stock company, partnership members of a partnership company, the owner or the lawful representative of a company in certain cases as provided may request the Court to open bankruptcy procedures when the enterprise is in bankrupt state.
|
|
3. The agency has jurisdiction over bankruptcy procedures
|
A district People’s Court is vested the jurisdiction on bankruptcy procedures applicable to a company whose business has been registered at the business registrar of such district, and the provincial People’s Courts resolve disputes involving remaining companies.
Carrying out bankruptcy procedures shall be undertaken by a judge at the district people’s court, and by a judge or a three-judge committee at the provincial people’s court. |
|
4. Receipt of Application and Procedures at Court
|
Within thirty (30) days upon receipt of an application, a decision will be issued to open or not open the bankruptcy procedures by the competent court upon careful consideration of the adequate evidences on the company’s bankruptcy.
Upon the decision on opening the bankruptcy procedures, pursuant to the particular provision of the Law on Bankruptcy, the judge will decide whether to apply either restoration of the business operation of the company and liquidation of the assets as well as debts or to apply the assets/debts liquidation procedure instead of the business operation restoration procedure or declare the bankruptcy of the company. Within seven (07) days as of the issuance of the decision on opening bankruptcy procedures, the court must notify the company of the decision and set up the asset management and liquidation teams to manage and liquidate the properties of such company. |
|
5. The property management and liquidation team (Receiver)
|
The asset management and liquidation team is established for managing and supervising the use of properties of the company after the decision on opening bankruptcy procedures is issued and shall be responsible for its performance before the judge(s).
|
|
6. Permitted Business activities during bankruptcy procedures
|
During bankruptcy procedures, all business of the company will be carried out as usual, yet under the supervision and inspection by judge(s) and the property management and liquidation team. However, under the Law on Bankruptcy some business activities are forbidden or subject to the Judge’s approval.
|
|
7. Creditors’ Conferences and Business Reorganization
|
The creditors’ conference is convened and presided over by the judge for adopting matters in relation to seizing properties of enterprise, plans on business reorganization, plan on property liquidation and other related issues.
The judge may issue a decision to effect the plan on business reorganization which has been adopted by the first creditors’ conference. The implementation of plans on business reorganization shall be no longer than three (03) years. Upon completion of the plan followed by the judge’s decision, such enterprise shall be regarded as no longer falling into the state of bankruptcy. |
|
8.Liquidation
|
The judge shall initiate property liquidation procedures in the following cases:
- The implementations of business reorganization measures could not afford to repay the enterprise’ due debts at the creditors' requests; - The creditors’ conferences fail due to absence of owners of company or lawful representative of the company at the creditors' conferences, or due to insufficient quorum of creditor participants in the creditors' conferences; - Creditors’ conference has adopted proposed solutions of business reorganization, but the company fails to build up the concrete plan on business reorganization or improperly implements such plan. After all guaranteed debts are paid off by the pledged and mortgaged assets, the division and liquidation of enterprises’ remaining assets shall be carried out in the following order as determined by the judge: - Bankruptcy charges; - Debts of salary, severance allowances, social insurances of employees of the company; and - Unguaranteed debts shall be dealt with in accordance with the List of creditors as determined by law. |
|
9.Bankruptcy Decision
|
Upon the completion of the liquidation, the Court will deliver a decision on the declaration of bankruptcy of the company as well as a decision on the completion of the liquidation.
|