Circular No. 14735/BTC-TCDN on handling difficulties in debt recovery and surplus assets

Pursuant to Clause 2, Article 10 and Article 41 of Decree No. 187/2004/NĐ-CP dated November 16, 2004 of the Government on transferring state-owned enterprises into joint-stock companies and Point 2.2, Clause 2, Section B, Part II of Circular No. 126/2004/TT-BTC dated December 24, 2004 of the Ministry of Finance guiding the implementation of Decree No. 187/2004/NĐ-CP, to resolve difficulties in the transfer of debts and surplus assets not included in enterprise value when ownership is transferred to the Company for purchasing and selling debts and surplus assets of enterprises (hereinafter referred to as the Debt Purchasing and Selling Company), the Ministry of Finance provides specific guidance on the following points:

1. Enterprises implementing ownership conversion, after the competent authority has announced the enterprise value, shall be responsible for preparing a detailed list of all assets and receivables excluded from the enterprise value to be handed over to the Debt Purchasing and Selling Company along with related documents.

In cases where the enterprise and the Debt Purchasing and Selling Company have agreed to hand over assets and receivables excluded from the enterprise value but have not yet included uncollectible accounts and assets subject to cancellation, the enterprise shall continue to hand over all such items to the Debt Purchasing and Selling Company.

Enterprises undergoing shareholding transformation that have assets and receivables excluded from the enterprise value may register to participate in auctions organized by the Debt Purchasing and Selling Company to purchase these debts and assets according to current regulations.

2. The Debt Purchasing and Selling Company shall be responsible for receiving all documents and surplus assets excluded from the enterprise value (including uncollectible debts and assets, assets subject to cancellation without sufficient documentation), classify them, and handle them according to regulations. Specifically:

a. For uncollectible debts and assets, the Debt Purchasing and Selling Company shall report to the Ministry of Finance for liquidation and cancellation. Costs associated with this activity shall be deducted from the proceeds of debt recovery and asset sales by the company.

b. For small-value assets, old and dilapidated assets, and immovable assets such as factories, underground structures, and small projects with no recovery value or recovery value insufficient to cover demolition costs, or difficult to liquidate or sell, in each specific case, the Debt Purchasing and Selling Company shall enter into contracts with the enterprise to handle and supervise their execution. If there is a significant difference (after deducting costs), it shall be remitted to the Debt Purchasing and Selling Company; if lower, the Debt Purchasing and Selling Company shall pay the enterprise.

c. For assets and receivables lacking documentation during the handover, the reasons and responsibilities shall be clearly recorded. If these assets and receivables cannot be sold or recovered, they shall be handled according to point a above.

3. Handling missing assets during the handover process:

During the handover of assets from the enterprise to the Debt Purchasing and Selling Company, if shortages are discovered (due to the enterprise having sold or lost the assets during its management period), the Debt Purchasing and Selling Company and the enterprise shall be responsible for preparing a record, determining the cause and value of the missing assets to serve as the basis for determining compensation levels.

- For assets sold by the enterprise, the enterprise shall be responsible for settling accounts and remitting to the Debt Purchasing and Selling Company the net proceeds from the sale of the assets after deducting sale-related expenses. The Debt Purchasing and Selling Company shall be responsible for summarizing this activity in its periodic reports to the Ministry of Finance according to current regulations.

- For lost assets, the Debt Purchasing and Selling Company shall report to the enterprise's owner representative and the Ministry of Finance for appropriate handling.

Any difficulties arising during implementation should be reported in writing to the Ministry of Finance for consideration and resolution./.