Are there any measures to restore business operations for insolvent businesses and cooperatives? How is the conference to approve the operational recovery method conducted? The article shares in detail the legal regulations surrounding the recovery of business operations for insolvent enterprises and cooperatives according to the provisions of the Bankruptcy Law 2014.

CSPL: Articles 88, 89, 90, 91, 92 Bankruptcy Law 2014

1. Measures to restore business operations for insolvent enterprises and cooperatives

– According to the provisions of Clause 2, Article 88 of the Bankruptcy Law 2014, insolvent enterprises and cooperatives can take the following measures to restore business operations:

+ Mobilize capital;

+ Reduce debt, debt exemption, debt postponement;

+ Change production and business products;

+ Innovate production technology;

+ Reorganize management apparatus, merge or split production departments;

+ Sell shares to creditors and others;

+ Sell or leasing assets;

+ Other measures not contrary to the provisions of law.

– Time limit for implementing the business recovery plan

+ Time limit for implementing the business recovery plan of insolvent enterprises and cooperatives according to the Resolution of the Conference of Creditors approving the business recovery plan Business.

+ In case the Creditors’ Conference cannot determine the time limit for implementing the plan to restore business operations of the insolvent enterprise or cooperative, the time limit for implementing the plan to restore business operations is no more than 03 years from the date the Creditors’ Conference approved the plan to restore business operations.

2. The creditors’ conference approved the plan to restore business operations of enterprises and cooperatives

2.1. Eligibility conditions for the Creditors’ Conference to approve the plan to restore business operations of enterprises and cooperatives

– There are a number of participating creditors representing at least 51% of the unsecured debt.

– Creditors who do not participate in the Creditors’ Conference but have written opinions sent to the Judge before the date of the Creditors’ Conference, clearly stating their specific opinions on approving or not approving the plan to restore business operations of the enterprise or cooperative are considered creditors participating in the Conference. creditors.

– Asset administrators and asset management and liquidation enterprises assigned to handle applications for opening bankruptcy procedures must participate in the creditors’ conference.

2.2. Content and order of the Creditors’ Conference to approve the business recovery plan

– Within 10 working days from the date of decision to bring the business recovery plan of the insolvent enterprise or cooperative to the Creditors’ Conference, the Judge convenes the Creditors’ Conference to consider and approve the business recovery plan.

– The creditors’ conference is conducted as follows. following:

+ Judge assigned to be in charge of opening the Creditors’ Conference;

+ The Creditors’ Conference voted to appoint the Secretary of the Creditors’ Conference at the request of the Asset Administrator, asset management and liquidation enterprise to record the minutes of the Creditors’ Conference;

+ The asset administrator, asset management and liquidation enterprise reported on the presence and absence presence of participants in the Creditor’s Conference according to the People’s Court’s convening notice, reason for absence and identity check of participants in the Creditor’s Conference;

+ Judge informs the Creditors’ Conference about the participants in the Creditors’ Conference;

+ Representatives of businesses and cooperatives present plans to restore business operations;

+ Participants The creditors’ conference presents its opinions on the business recovery plan;

+ The creditors’ conference discusses and votes to approve the business recovery plan.

– The creditors’ conference is postponed once in case the valid conditions are not met. The reorganization of the Creditors’ Conference is carried out in accordance with the provisions of Article 90 and Article 91 of this Law.

– The resolution of the Creditors’ Conference approves the business recovery plan when approved by more than half of the total number of unsecured creditors present and representing 65% or more of the total unsecured debt.

– In case the plan to restore business operations uses secured assets, it must clearly stipulate the time for using the secured assets, the plan for handling the secured assets and must be agreed by the creditors secured by those assets.

– The resolution of the Creditors’ Conference is binding on all creditors.

2.3. Recognizing the resolution of the Creditors’ Conference approving the plan to restore business operations of enterprises and cooperatives

 – The judge issues a decision to recognize the resolution of the Creditors’ Conference approving the plan to restore business operations of insolvent enterprises and cooperatives. This resolution is effective for all relevant participants in bankruptcy procedures.

– From the date this resolution takes effect, the prohibitions and supervision on business activities of enterprises and cooperatives specified in Article 48 and Article 49 of this Law shall terminate.

– The People’s Court sends a decision to recognize the resolution of the Meeting of Creditors through a recovery plan. Recover business activities for insolvent enterprises, cooperatives, creditors, and People’s Procuracy at the same level within 07 working days from the date of decision.