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Bankruptcy-2015 (1) (1) Pptx?globalnavigation False
Bankruptcy-2015 (1) (1) Pptx?globalnavigation False
Bankruptcy-2015 (1) (1) Pptx?globalnavigation False
Enterprises Cooperative
I. General provision
Definition
• Insolvent Enterprise or Cooperative: Means an
enterprise or cooperative that fails to perform the obligation
to pay its debts within 3 months after such debts become
due
• Bankruptcy: Mean the state of Insolvency of An enterprise
or Cooperative which is declared bankrupt by a people’s
court
3 type of Debt
• Guarantee debts => Guarantee creditor
• Partially Guaranteed Debt => Partially Guaranteed Creditor
• Unguaranteed Debt => Unguaranteed Creditors
Art 4
Bankruptcy Procedure-conducting person
Include
1. Chief justice of people’s court
2. Judges
3. Chief procurators of people’s procuracies
4. Asset management officers (AMO)
5. Asset management and Liquidation firms (AMLF)
6. Head of civil judgment enforcer agencies and enforcers
1. When is an enterprise/cooperative considered as
bankrupt? (Article 4.2 of the law on bankruptcy 2014)
Insolvency
Bankrupt
Enterprise
/
cooperativ
e
Declaration
of the court
When is an enterprise/cooperative insolvent?
(Article 4.1 of the law on bankruptcy 2014)
Directly Submit
submit by post
How is an enterprise/cooperative declared
bankrupt?
Request for a
bankruptcy process
Dismiss the
Accept the request
request
Refuse to initiate
Initiate bankruptcy
bankruptcy
process
process
Resume
Declare bankrupt
business
and liquidate assets
operations
Who will handle the request? (Art 31)
A judge
The
executive
judge A group of 3
judges
3 working
In which cases will the court dismiss the request?
(Art 35)
The
The initiation
bankruptcy
The of bankruptcy
fee and
requester is process
bankruptcy
not entitled already
advance (if
to request made by
applicable)
No another court
not paid
amendment to
the request
The request
made within
withdrawn
10 days
working days
of notification
Can the decision on dismissal of the request be reconsidered? (Art 36)
The Uphold
requester the
Or The dismissal
executive The Uphold
The
judge executiv the
people’s Cancel
e judge dismissal
procurac the
y of the
dismissal Cancel
higher
court the
dismissal
3 working days 3 working days
Cases when
Within 3 working days from the
Dismissal
day of appointment
For AMLF:
Partnership, at least 2 partners being AMO
private enterprise; Owner being AMO
Rights and obligation of AMO and AMLF( art 16)
Violaiton?
IV. PROPERTIES OBLIGATIONS and MEASURE
TO PRESERVE ASSETS
Properties obligations (art 51,52,53)
Properties
obligation
Determination
Valuation of Settlement of
of interests on
properties secured debts
debts
Order of division of assets (art 54)
Asset of declared bankrupt enterprise shall be divided to
pay in the following
• Bankruptcy expenses
• Salaries, severance allowances, social insurance and
health insurance owned to employees and other benefits
• Debts arising after the initiation of bankruptcy procedures
for resumption of business operation of enterprise
• Financial obligation toward state, unsecured debts
payable to creditors, secured debts not yet paid
Then
• Owners, members, partners or shareholders.
Measures to preserve assets (art 65,66,67,70)
Measures to
preserve
assets
RESOLUTION
If the enterprise
does not become
bankruptcy
VI. BUSINESS OPERATION RESTORATION
Business Operation Restoration (art 87)
• Within 30 days since approval of resolution, Insolvent
Enterprise shall make a business operation restoration
plan and send it to Judge, creditors, ASM/AMLF
Or
Asset
Sale of asset Recovery of asset
valuation/revaluation
Ban from holding managerial posts (130)
• Holders of the posts of president, director, general director
and member of Board of Directors in Enterprises with
100% state capital: prohibited from holding such post in
any state enterprise
• Those who act as representatives of state capital at state-
invested enterprise which are declare bankrupt shall be
prohibited from holding managerial post in any state-
invested enterprise
• Other case judges shall consider and decide to deprive
them of the right to establish, act as managers within 3
years
• Except case of go bankrupt for Force Majeure Reasons.
Distinguish bankruptcy and dissolution
Criteria Bankruptcy dissolution
The operation duration
expires
The decisions of the owners
Reason In insolvency situation The required minimum
numbers no longer
remaining for 6 consecutive
months
Authority to The registration
business withdrawn
registration
The court
settle office
Does not always
Outcome Terminate the operation
terminate the operation
Managers banned to
No restriction applied for
State’s attitude hold posts in a set
managers
period of time