What are regulations on application temporary emergency measures in bankruptcy in Vietnam?

What are regulations on application temporary emergency measures in bankruptcy in Vietnam? (Illustration)

1. Who is entitled to request the application of provisional emergency measures in bankruptcy in Vietnam?

In the course of settling a petition for opening bankruptcy proceedings, the following persons may request a competent People's Court to conduct bankruptcy proceedings to issue a decision to apply one or several provisional emergency measures in Vietnam:

- Persons with the right and obligation to submit applications as prescribed in Article 5 of the Bankruptcy Law;

- Financial administrators, enterprises that manage and liquidate assets.

2. Competence to apply provisional emergency measures in bankruptcy in Vietnam

The competence to apply provisional urgent measures in bankruptcy lies with the judge conducting the bankruptcy procedure.

3. Temporary emergency measures in bankruptcy in Vietnam

- For the sale of perishable goods, goods that are nearing the end of their shelf life, goods that are not sold at the right time will be unlikely to be consumed; for harvesting, selling flowers or other products and goods;

- Profiling and sealing of assets of enterprises and cooperatives;

- Freezing accounts of enterprises and cooperatives at banks; freezing assets at places of deposit in Vietnam;

- Sealing warehouses, funds, seizing and managing accounting books and related documents of enterprises and cooperatives;

- Prohibiting the transfer of property rights to assets of an insolvent enterprise or cooperative;

- Prohibition of changing the status quo of assets of enterprises or cooperatives insolvent in Vietnam;

- Prohibiting or compelling other enterprises, cooperatives, individuals or organizations concerned to perform certain acts;

- Forcing employers to advance salaries, wages, compensation, work-injury benefits or occupational diseases to employees in Vietnam;

- Other temporary emergency measures as prescribed by law.

4. How to request the application of provisional emergency measures in bankruptcy in Vietnam

The requester for application of provisional emergency measures must send a written request to the competent People's Court.

The written request for application of provisional emergency measures in Vietnam must contain the following principal contents:

- Dated

- Name and address of the person requesting the application of provisional emergency measures;

- Name and address of the person requested to apply provisional emergency measures;

- The reasons for the application of provisional emergency measures;

- Temporary emergency measures need to be applied and specific requirements.

Depending on the request for application of provisional emergency measures in Vietnam, the requester shall provide the People's Court with evidence to prove the necessity to apply such provisional emergency measures.

5. Case of cancellation of application of provisional emergency measures in bankruptcy in Vietnam

The Court shall immediately issue a decision to annul the provisional emergency measure in one of the following cases:

- The grounds for the application of provisional emergency measures are no longer available;

- The court shall issue a decision not to open bankruptcy proceedings in Vietnam;

- The court shall issue a decision to terminate the bankruptcy procedure;

- The court shall issue a decision to terminate the business recovery procedure under Point a, Clause 1, Article 95 of the Law on Bankruptcy;

- The petitioner for application of provisional emergency measures requests cancellation in Vietnam;

- The decision to apply provisional emergency measures is not in accordance with the law.

6. Liability due to improper application of provisional emergency measures in bankruptcy in Vietnam

- The persons requesting the Courts to apply provisional emergency measures in Vietnam shall be responsible before law for their requests; in case of improper application of provisional emergency measures and causing damage to the persons subject to provisional emergency measures or to third parties, they must compensate in accordance with civil law;

- If the Court applies the provisional emergency measure improperly, causing damage to the person subject to the provisional emergency measure or to a third person in Vietnam , the Court shall pay compensation under the provisions of Clauses 2 and 3, Article 113 of the Civil Procedure Code;

- Individuals, agencies and organizations that commit illegal acts during the application of provisional emergency measures shall be handled responsibly in accordance with Article 129 of the Law on Bankruptcy.

(Article 70 of the Bankruptcy Law 2014, Article 5 of Resolution 03/2016/NQ-HĐTP)

Diem My

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE