Process for developing a plan to restore business operations according to legal regulations

How is the business recovery period after a business opens bankruptcy procedures regulated by law? What legal consequences will the procedure for restoring suspended business operations lead to?

1. Process of developing a plan to restore business operations

Business recovery is a bankruptcy resolution procedure that the court can decide to apply after a decision to open bankruptcy proceedings is made, when certain conditions are met.

According to Article 87 of the Bankruptcy Law 2014, develop a plan to restore business operations in order The following:

– Within 30 days from the date the Creditors’ Conference passes a resolution containing the application of procedures to restore business operations, insolvent enterprises and cooperatives must develop a plan to restore business operations and send it to the Judge, creditors, administrator, asset management and liquidation enterprise for comments.

– Within 10 working days from From the date of receiving the business recovery plan of the enterprise or cooperative, the creditor, the Asset Management Company, the asset management and liquidation enterprise shall send comments to the enterprise or cooperative to complete the business recovery plan and report to the Asset Management Officer, the asset management and liquidation enterprise, the creditors, and the Creditor’s Representative Board (if any).

– Immediately after receiving the business recovery plan as prescribed in Clause 2 On this matter, the Asset Administrator, asset management and liquidation enterprise is responsible for reporting to the Judge.

– Within 15 days from the date of receiving the business recovery plan of the Asset Administrator, asset management and liquidation enterprise, the Judge will consider before submitting the plan to the Creditors’ Conference for consideration and approval.

2. How long is an enterprise allowed to implement a business recovery plan?

According to Article 89 of the Bankruptcy Law 2014, the time limit for implementing a business recovery plan is prescribed as follows:

– Time limit for implementing the plan to restore business activities of an insolvent enterprise or cooperative according to the Resolution of the Conference of Creditors approving the plan to restore business activities.

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

During this time, there will be an agency supervising the implementation of the business recovery plan. This issue is specifically stipulated in Article 93 of the Bankruptcy Law 2014 as follows:

– After the Judge issues a decision to recognize the resolution of the Meeting of Creditors approving the plan to restore business operations of insolvent enterprises and cooperatives, the Treasurer, asset management and liquidation enterprise, and creditors supervise the business operations of enterprises and cooperatives. commune.

– Every six months, enterprises and cooperatives must prepare a report on the implementation of the business recovery plan of the enterprise or cooperative for the Asset Management Officer and asset management and liquidation enterprise. Asset administrators and asset management and liquidation businesses are responsible for reporting to the Judge and notifying creditors.

3. In what cases are business recovery procedures suspended?

Pursuant to Article 95 of the Bankruptcy Law 2014, business recovery procedures are suspended in the following cases:

– The judge issues a decision to suspend business recovery procedures of insolvent enterprises and cooperatives if they fall into one of the following cases as follows:

+ Enterprises and cooperatives have completed the plan to restore business activities;

+ Enterprises and cooperatives have not been able to implement the plan to restore business activities;

+ The deadline for implementing the plan to restore business activities has expired but the enterprise and cooperative are still insolvent accounting.

– The People’s Court publicly announces the decision to suspend procedures for restoring business operations of enterprises and cooperatives according to the provisions of Clause 1, Article 43 of this Law.

At the same time, the legal consequences of suspending business recovery procedures according to Article 96 of the 2014 Bankruptcy Law are determined as follows:

– In the case specified in Point a, Clause 1, Article 95 of this Law, the enterprise and cooperative are considered no longer insolvent. The judge in charge of resolving requests to open bankruptcy procedures is responsible for issuing a written notice of termination of the rights and obligations of the Asset Administrator or asset management and liquidation enterprise.

– In the cases specified in Points b and c, Clause 1, Article 95 of this Law, the Judge shall issue a decision to declare the enterprise or cooperative bankrupt.