Tiếng Việt
中文The Debt and Asset Trading Corporation (DATC) may only carry out enterprise restructuring when it has sufficient sources from the difference between the debt purchase cost and the book value of the debt to handle the restructuring, in accordance with Decree No. 129/2020/ND-CP and current law on State capital management in enterprises.
1. Enterprises eligible for restructuring
Under Clause 1, Article 20 of Decree No. 129/2020/ND-CP, enterprises restructured by DATC include:
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- Equitized enterprises after financial settlement and enterprise valuation whose actual value is lower than their liabilities;
- Other enterprises that are debtors of DATC associated with debt handling and recovery plans.
2. Restructuring conditions when sources from the difference are insufficient
To proceed with restructuring, the enterprise must be assessed as capable of recovery and development after DATC participates in debt handling and restructuring, and DATC must have sufficient sources from the difference between the debt purchase cost and the book value of the debt to handle the enterprise’s financial shortcomings.
Where sources from the difference are insufficient, DATC does not carry out enterprise restructuring but applies other forms of debt handling under Article 16 of Decree No. 129/2020/ND-CP such as debt recovery, debt sale, debt-to-equity conversion, or debt restructuring.
3. Current legal framework on State capital management
DATC’s capital utilization in enterprise restructuring must comply with Law No. 68/2025/QH15 on Management and Investment of State Capital in Enterprises (effective from 01 August 2025, replacing Law No. 69/2014/QH13) together with implementing decrees: Decree No. 365/2025/ND-CP, Decree No. 366/2025/ND-CP, and Decree No. 57/2026/ND-CP on restructuring of State capital in enterprises.
Notes on application
Law No. 69/2014/QH13 expired on 01 August 2025. Regulations on guarantees and the use of State capital should be cross-checked against Law No. 68/2025/QH15 and current implementing documents.
Common risks to note
- Applying the expired provisions of Law No. 69/2014/QH13;
- Carrying out restructuring without a plan approved under the delegated authority;
- Failing to fully assess the enterprise’s recovery capability before restructuring.
How can ANT Legal help?
ANT Legal assists in reviewing debt handling and enterprise restructuring plans and advises on compliance with State capital management law. For advice, please contact our lawyers at ANT Legal.
