What is an insolvent enterprise? What are the solutions to resume the business operation of insolvent entities in Vietnam?
- Vietnam: What is an insolvent enterprise?
- What are the solutions to resume the business operation of insolvent entities in Vietnam?
- How to make plans to resume business operations in Vietnam?
- What is the deadline for implementation of plans to resume the business operation of insolvent entities in Vietnam?
Vietnam: What is an insolvent enterprise?
According to the provisions of Clause 1, Article 4 of the Law on Bankruptcy 2014, an insolvent enterprise or insolvent cooperative (hereinafter referred to as insolvent entity) is an enterprise or a cooperative having failed to meet the debt liability for 03 months from the deadline for repayment.
What are the solutions to resume the business operation of insolvent entities in Vietnam?
Pursuant to Clause 2, Article 88 of the Law on Bankruptcy 2014, it is stipulated as follows:
Contents of plans to resume business operations
1. The plan to resume the business operation of an insolvent entity must specify the solutions to resume the business operation; requirements, deadline and plan to pay the debts.
2. The solutions to resume the business operation include:
a) Capital mobilization;
b) Debt relief, debt moratorium;
c) Changing products and goods;
d) Technological innovation;
dd) Reorganization of governing board, merging or separating the production division;
e) Selling share to the creditors and others;
g) Selling or lending the assets;
h) Other solutions under the regulations of the law.
Accordingly, the solutions to resume the business operation include:
- Capital mobilization;
- Debt relief, debt moratorium;
- Changing products and goods;
- Technological innovation;
- Reorganization of governing board, merging or separating the production division;
- Selling share to the creditors and others;
- Selling or lending the assets;
- Other solutions under the regulations of the law
What is an insolvent enterprise? What are the solutions to resume the business operation of insolvent entities in Vietnam?
How to make plans to resume business operations in Vietnam?
According to the provisions of Article 87 of the Law on Bankruptcy 2014 on this content as follows:
Making plans to resume business operations
1. The insolvent entity must send the plan to resume their business operation to the Judge, creditors, asset management officer and asset management enterprise for consideration within 30 days from the day on which any creditors’ meeting passes the Resolution that mentions the procedures for resuming their business operation.
2. The creditors, asset management officer, asset management enterprise shall give their opinions to complete the plan to resume the business operation that is sent to the asset management officer, asset management enterprise, creditors and creditors’ Representative board (if any) within 10 working days from the receipt of such plan.
3. The asset management officer and asset management enterprise must send a report to the Judge on their receipt of the plan to resume the business operation as prescribed in Clause 2 this Article.
4. The Judge shall consider before sending the plan to resume the business operation to the creditors’ meeting for consideration within 15 days from the receipt of such plan from the asset management officer and asset management enterprise.
Accordingly, making plans to resume business operations are as follows:
- The insolvent entity must send the plan to resume their business operation to the Judge, creditors, asset management officer and asset management enterprise for consideration within 30 days from the day on which any creditors’ meeting passes the Resolution that mentions the procedures for resuming their business operation.
- The creditors, asset management officer, asset management enterprise shall give their opinions to complete the plan to resume the business operation that is sent to the asset management officer, asset management enterprise, creditors and creditors’ Representative board (if any) within 10 working days from the receipt of such plan.
- The asset management officer and asset management enterprise must send a report to the Judge on their receipt of the plan to resume the business operation as prescribed in Clause 2 Article 87 of the Law on Bankruptcy 2014
- The Judge shall consider before sending the plan to resume the business operation to the creditors’ meeting for consideration within 15 days from the receipt of such plan from the asset management officer and asset management enterprise.
What is the deadline for implementation of plans to resume the business operation of insolvent entities in Vietnam?
Pursuant to Article 89 of the Law on Bankruptcy 2014, it is stipulated as follows:
Deadline for implementation of plans to resume business operations
1. The deadline for implementation of a plan to resume the business operation of an insolvent entity is prescribed in the Resolution of the creditors’ meeting agreeing the plan to resume the business operation.
2. If the creditors’ meeting cannot specify the deadline implementation of a plan to resume the business operation of an insolvent entity, such plan shall be implemented within 03 years from the day on which the creditors’ meeting agrees such plan.
Thus, the deadline for implementation of a plan to resume the business operation of an insolvent entity is prescribed in the Resolution of the creditors’ meeting agreeing the plan to resume the business operation..
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