When will requests for initiation of bankruptcy process for credit institutions in Vietnam be accepted? What is the sequence of distribution of assets?
- When will requests for initiation of bankruptcy process for credit institutions in Vietnam be accepted?
- What is the sequence of distribution of assets of credit institutions in Vietnam according to current regulations?
- Who has the authority to issue decisions to declare credit institutions bankrupt in Vietnam?
When will requests for initiation of bankruptcy process for credit institutions in Vietnam be accepted?
Pursuant to Article 99 of the Law on bankruptcy 2014, it is stipulated as follows:
Receipt of requests for initiation of bankruptcy process for credit institutions
The People’s Court shall receive the request for initiation of bankruptcy process of any credit institution when the State bank of Vietnam issues the Decision to end the special control or Decision to end the employment or not to employ the measures to regain solvency but such credit institution is still insolvent.
Accordingly, the People’s Court shall receive the request for initiation of bankruptcy process of any credit institution when the State bank of Vietnam issues the Decision to end the special control or Decision to end the employment or not to employ the measures to regain solvency but such credit institution is still insolvent.
When will requests for initiation of bankruptcy process for credit institutions in Vietnam be accepted? What is the sequence of distribution of assets?
What is the sequence of distribution of assets of credit institutions in Vietnam according to current regulations?
Pursuant to Article 101 of the Law on bankruptcy 2014, this content is stipulated as follows:
Sequence of distribution of assets
1. The redistribution of the assets of a credit institution shall follow this following sequence:
a) Bankruptcy fee;
b) Unpaid salaries, severance pay, social insurance, medical insurance of the employees and other benefits under their labor contracts and collective bargaining agreements;
c) Deposits, amounts that the deposit insurers must pay to the depositors at the credit institution declared bankrupt under the regulations of the law on deposit insurance and instructions of the State bank of Vietnam;
d) Financial obligations to the State; unsecured debts payable to the creditors on the list of creditors; secured debts that are unpaid because the value of the collateral cannot afford the debts.
2. The remaining amount after the debts are paid off by the value of the assets of the credit institution as prescribed in Clause 1 this Article shall be given to:
a) Cooperatives that are members of the credit institution;
a) Single member limited liability company that is the owner of the credit institution;
c) Multi-member limited liability companies that contribute capital to the credit institution; joint-stock companies that are the shareholder in the credit institution.
3. If the value of the is are not sufficient for the payment in accordance with the regulations in Clause 1 this Article, the entities in a order of priority shall be paid at a rate in proportion to the debts.
Accordingly, the division of asset value of credit institutions is carried out in the following order:
(1) Bankruptcy fee;
(2) Unpaid salaries, severance pay, social insurance, medical insurance of the employees and other benefits under their labor contracts and collective bargaining agreements;
(3) Deposits, amounts that the deposit insurers must pay to the depositors at the credit institution declared bankrupt under the regulations of the law on deposit insurance and instructions of the State bank of Vietnam;
(4) Financial obligations to the State; unsecured debts payable to the creditors on the list of creditors; secured debts that are unpaid because the value of the collateral cannot afford the debts.
If the value of the is are not sufficient for the payment, the entities in a order of priority shall be paid at a rate in proportion to the debts.
In addition, the remaining amount after the debts are paid off by the value of the assets of the credit institution as prescribed in Clause 1 this Article shall be given to:
- Cooperatives that are members of the credit institution;
- Single member limited liability company that is the owner of the credit institution;
- Multi-member limited liability companies that contribute capital to the credit institution; joint-stock companies that are the shareholder in the credit institution.
Who has the authority to issue decisions to declare credit institutions bankrupt in Vietnam?
Pursuant to Article 104 of the Law on bankruptcy 2014, this content is stipulated as follows:
Decisions to declare credit institutions bankrupt
The People’s Court shall issue a Decision to declare a credit institution bankrupt within 30 days from the day on which the asset management officer and asset management enterprise completely make the list of creditors and debtors and the inventory of assets of the credit institution.
The Supreme People’s Court shall provide guidance on this Article.
Accordingly, the People’s Court shall issue a Decision to declare a credit institution bankrupt within 30 days from the day on which the asset management officer and asset management enterprise completely make the list of creditors and debtors and the inventory of assets of the credit institution.
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