Decree No. 189-CP guiding the implementation of the Enterprise Bankruptcy Law

DECREE

Guidelines for Implementing the Enterprise Bankruptcy Law

_________________

 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Enterprise Bankruptcy Law dated December 30, 1993;

At the proposal of the Minister of Justice; the Minister of Finance; the Minister, Chairman of the State Planning Commission;

 DECREE:

I - ON THE SCOPE OF APPLICATION OF THE ENTERPRISE BANKRUPTCY LAW

Article 1

1 - The enterprises subject to the Enterprise Bankruptcy Law include:

a) State-owned enterprises;

b) Enterprises of political and social organizations;

c) Individual businesses;

d) Limited liability companies;

đ) Joint stock companies;

e) Enterprises with a portion of foreign investment;

g) Enterprises with 100% foreign investment;

h) Cooperatives;

2 - Individuals and business groups established and operating under Decree No. 66-HĐBT dated March 2, 1992 of the Council of Ministers (now the Government) are not within the scope of application of the Enterprise Bankruptcy Law.

Article 2

The resolution of bankruptcy for enterprises with a portion of foreign investment and enterprises with 100% foreign investment must be carried out in accordance with the Enterprise Bankruptcy Law, the Law on Foreign Investment in Vietnam, this Decree, and other legal documents specifically guiding the resolution of bankruptcy in accordance with the characteristics of such enterprises, except where international treaties to which the Socialist Republic of Vietnam is a party or has signed provide otherwise.

II - ON THE BASIS FOR CONSIDERING ENTERPRISES IN A BANKRUPTCY SITUATION

STATUS OF BANKRUPTCY

Article 3

1 - An enterprise shall be deemed to have signs indicating it is entering a state of bankruptcy as provided in Article 2 of the Enterprise Bankruptcy Law if its business operations result in losses for two consecutive years to the extent that it cannot pay off due debts and cannot fully pay wages to workers according to labor agreements and contracts for three consecutive months.

2 - When signs indicating entry into a state of bankruptcy as mentioned in Clause 1 of this Article appear, the enterprise must apply necessary financial measures as follows to overcome the inability to pay off due debts:

a) Develop a plan to reorganize production and business activities, strictly manage expenses, and seek markets for product sales;

b) Take measures to handle surplus goods, products, and materials;

c) Recover debts and assets that have been misappropriated;

d) Negotiate with creditors to defer debt payments, purchase debts, guarantee debts, reduce, or waive debts;

đ) Seek financial assistance and loans to cover due debts and invest in technological upgrades.

3 - After applying the necessary financial measures as mentioned in Clause 2 of this Article but still encountering difficulties and unable to overcome the inability to pay off due debts, the enterprise will be considered to have entered a state of bankruptcy and must be handled in accordance with the provisions of the Enterprise Bankruptcy Law and this Decree.

III - ON IMPLEMENTING THE ENTERPRISE BANKRUPTCY LAW FOR

ENTERPRISES DIRECTLY SERVING NATIONAL DEFENSE, SECURITY AND CRUCIAL PUBLIC SERVICES

SECURITY AND CRUCIAL PUBLIC SERVICES

Article 4

1 - Enterprises eligible for recognition as enterprises directly serving national defense, security, and crucial public services must be those currently operating in the following fields and industries:

a) Production and repair of weapons, equipment, and specialized equipment for national defense and security; enterprises combining economy with national defense in strategically important areas;

b) Financial, monetary, and insurance businesses;

c) Electricity production and supply;

d) Urban public transportation;

đ) Rail transport, air cargo transport;

e) Telecommunications;

g) Management and exploitation of water conservancy works;

h) Management and construction of special-use forests and key national protective forests.

2 - The Minister in charge of the relevant sector, after reaching a written agreement with the Minister, Chairman of the State Planning Commission, and the Minister of Finance, shall establish and publish a list of specific enterprises as mentioned in Clause 1 of this Article.

Article 5

1 - In cases where enterprises as stipulated in Article 4 of this Decree encounter an inability to pay off due debts, their legitimate representatives must immediately report in writing to the agency that issued the establishment decision. The report must clearly state the reasons, current financial status, and measures taken to address the inability to pay off due debts.

2 - Within fifteen (15) days from the date of receipt of the report, the head of the agency that issued the establishment decision must consider and decide on necessary measures to restore the ability to pay off due debts of the enterprise.

3 - If the measures to restore the ability to pay off due debts exceed the capacity of the enterprise, the head of the agency that issued the establishment decision must report to the Prime Minister for consideration and decision on whether to support or not support the enterprise.

Article 6

1 - The court may issue a decision to initiate proceedings to declare bankruptcy against enterprises directly serving national defense, security, and crucial public services as stipulated in Article 4 of this Decree only after receiving a document from the Prime Minister or the head of the state agency that issued the establishment decision regarding the non-application of necessary measures to restore the ability to pay off due debts of the enterprise.

2 - After the court accepts the petition to declare bankruptcy, the bankruptcy resolution process for enterprises directly serving national defense, security, and crucial public services shall be conducted in accordance with the provisions of the Enterprise Bankruptcy Law, this Decree, and other related legal regulations concerning the resolution of enterprise bankruptcy.

IV - ON THE LEGAL REPRESENTATIVES OF ENTERPRISES

, Clause 1, Clause 2 Article 7a of this Regulation.

1 - The legal representatives of enterprises during the process of declaring bankruptcy include representatives appointed by law or by delegation.

2 - The legal representative of an enterprise is:

a) The Chairman of the Management Board for state-owned enterprises and enterprises of political and social organizations with a Management Board; the Director or General Director for state-owned enterprises and enterprises of political and social organizations without a Management Board;

b) The Chairman of the Board of Directors for joint-stock companies, enterprises with foreign investment capital, and limited liability companies with twelve members or more. In cases where a limited liability company does not establish a Board of Directors, the legal representative is the person designated to manage the company and recorded in the Company Charter;

c) The Head of the Cooperative for cooperatives.

3- The legal representative of the enterprise mentioned in Clause 2 of this Article may delegate in writing to a member of the Management Board, Board of Directors, Deputy Director, Deputy General Director, or Deputy Head to participate in the process of resolving bankruptcy. The power of attorney must clearly define the scope of authority granted to the representative.

4- The owner of a private enterprise, the owner of an enterprise with 100% foreign investment capital, which does not establish a Board of Directors, must directly participate in the process of resolving enterprise bankruptcy; if there are valid reasons, they may delegate in writing to another person to participate in the process of resolving enterprise bankruptcy.

V- REGARDING THE PARTICIPATION OF TRADE UNIONS IN THE RESOLUTION OF ENTERPRISE BANKRUPTCY

RESOLUTION OF ENTERPRISE BANKRUPTCY

Article 8

1- The trade union representative participating in the process of resolving enterprise bankruptcy is the Chairman of the Trade Union Executive Committee or a person authorized in writing by the Chairman of the Trade Union Executive Committee.

2- The trade union representative exercises the rights and obligations of a creditor during the process of participating in the resolution of enterprise bankruptcy according to the provisions of the Enterprise Bankruptcy Law and this Decree.

Article 9

The trade union representative submits a petition requesting the declaration of enterprise bankruptcy when the following two conditions are met:

1- The enterprise fails to pay wages to employees in accordance with labor agreements and employment contracts for three consecutive months;

2- There is a resolution of the trade union requesting the resolution of the declaration of enterprise bankruptcy.

VI- REGARDING THE PETITION DOCUMENTS FOR THE RESOLUTION OF THE DECLARATION OF ENTERPRISE BANKRUPTCY

Article 10

Creditors submitting a petition to the Court to resolve the declaration of enterprise bankruptcy as stipulated in Article 7 of the Enterprise Bankruptcy Law must submit the following documents to prove the debts:

1- A copy of the overdue debt demand letter;

2- Documents related to the resolution of disputes over debts;

3- Documents proving the inability to pay overdue debts that the enterprise has not paid, specifically:

a) For borrowed debts, these are acknowledgment documents and papers proving the amount of debt due but unpaid to creditors;

b) For debts arising from business activities, these are exchange contracts, purchase and sale contracts, service contracts accompanied by sales invoices, service provision invoices, and papers proving the amount of debt due but unpaid;

c) For rental debts, these are lease contracts, property handover records, and papers proving the amount of rent due but unpaid by the enterprise;

d) For tax debts and other government debts, these are tax payment notices and documents indicating the enterprise's obligation to pay the state budget;

đ) For wage debts, termination benefits, social insurance payments, and other employee benefits, these are employment contracts, labor agreements, attendance sheets, product acceptance reports, service acceptance reports, payroll settlement documents, social insurance payment vouchers, and other relevant documents;

e) For other debts, these are debt reconciliation statements between creditors and the indebted enterprise.

4- Other documents deemed necessary.

Article 11

The legal representative of the enterprise, the owner of a private enterprise, the owner of an enterprise with 100% foreign investment capital, which does not establish a Board of Directors, when submitting a petition to declare bankruptcy as stipulated in Article 9 of the Enterprise Bankruptcy Law must submit the following documents along with the petition:

1- A list of creditors, specifying the address, amount owed to each creditor, overdue debts, non-overdue debts, secured debts, partially secured debts, unsecured debts;

2- A report on business operations six (6) months before losing the ability to pay overdue debts;

3- A final account report and detailed financial situation report for the last two (2) years or since the start of business operations for enterprises operating less than two years. The report must be confirmed by the Audit Agency, and for state-owned enterprises, it must also be approved by the competent state agency according to current regulations;

4- A report on financial measures the enterprise has applied to overcome the inability to pay overdue debts;

5- A statement of responsibility of the Chairman and members of the Board of Directors, Board of Directors, Director, or General Director regarding the enterprise's inability to pay overdue debts;

6- Copies of accounting documents, including summary ledgers; detailed inventory lists of assets, materials, goods; accounts receivable tracking books, advance payment tracking books, and other related accounting books as required by the Court;

7- Other documents deemed necessary.

Article 12

In addition to the contents stipulated in Article 11 of this Decree, the legal representative of the enterprise, the owner of a private enterprise, the owner of an enterprise with 100% foreign investment capital, which does not establish a Board of Directors, when submitting a petition to declare enterprise bankruptcy must also submit to the Provincial People's Court a report on the enterprise's ability to pay debts, including the following main contents:

1- Cash, balance in deposit accounts (Vietnamese dong and foreign currency), value of gold, silver, precious stones, and total value of negotiable instruments of the enterprise;

2- An inventory list detailing types, quantities, values according to accounting records and market estimates of inventory materials, products, goods, goods in transit, specifying the value of materials, products, goods that can be sold; materials, products, goods used as collateral; value of unfinished products, services that can be sold, settled.

3 - The remaining value of fixed assets according to book value and estimated market value, including the amount of assets used for guarantee or collateral; the valuation of unfinished construction projects, including the amount that can be recovered from selling such projects;

4 - Assets and capital participating in cooperation and joint ventures, including the amount of capital that can be recovered;

5 - List of debtors of the enterprise, including their addresses, amounts owed by each debtor, overdue debts, non-overdue debts, and debts that can be recovered;

6 - Value of property rights in all forms as prescribed by law.

VII - ON THE IMPLEMENTATION OF CONCILIATION AND REORGANIZATION SOLUTIONS

OF THE BUSINESS OPERATIONS OF THE ENTERPRISE

Article 13

The conciliation plan and reorganization solutions for the business operations of the enterprise as stipulated in Article 20 of the Enterprise Bankruptcy Law include the following main contents:

1 - Suggestions for deferring, reducing, forgiving debts, purchasing debts, guaranteeing debts, and other measures to address the situation of inability to pay due debts; commitments from the debtor enterprise regarding the time, amount, and method of paying due debts;

2 - Measures to reorganize the business operations of the enterprise, including financial measures, restructuring organizational structures, labor realignment, management improvement, technological perfection, and other necessary measures to address the situation of inability to pay due debts. Each measure must have a specific timeframe and implementation plan;

3 - The conciliation plan and reorganization solutions for the business operations of the enterprise mentioned in Clause 1 and Clause 2 of this Article must be documented in writing and signed by the authorized representative of the enterprise, the owner of a private enterprise, and the owner of a foreign-invested enterprise with 100% foreign capital that does not establish a Board of Management.

Article 14

During the implementation of the conciliation plan and reorganization measures, the debtor enterprise has the responsibility to:

1 - Implement the conciliation plan and reorganization measures for the business operations of the enterprise strictly according to the agreed timeframes and plans;

2 - Report periodically or at any time upon request of the Judge responsible for handling the bankruptcy declaration application (hereinafter referred to as the Judge) and creditors on the progress and results of implementing the conciliation plan and reorganization solutions for the business operations of the enterprise;

3 - Request the Court to declare bankruptcy if it considers that the conciliation plan and reorganization solutions cannot be implemented.

 VIII - ON BANKRUPTCY DUE TO UNAVOIDABLE CIRCUMSTANCES

Article 15

An enterprise declared bankrupt due to unavoidable circumstances is an enterprise that is declared bankrupt due to natural disasters, enemy attacks, fires not caused by itself, or the direct impact of the bankruptcy of other enterprises which the enterprise owner or manager could not foresee or although they were aware and took all necessary measures, could not overcome.

Article 16

1 - The bankruptcy due to unavoidable circumstances must be clearly stated in the decision declaring the enterprise bankrupt.

2 - The Chairman and members of the Management Board, Board of Directors, General Director, or Deputy General Director of an enterprise declared bankrupt due to unavoidable circumstances may continue to hold those positions in other enterprises as provided for in Article 50 of the Enterprise Bankruptcy Law.

 

IX - ON THE ORGANIZATION AND ACTIVITIES OF THE ASSET MANAGEMENT TEAM

Article 17

Before issuing a decision to initiate procedures to handle the bankruptcy declaration application of the enterprise, the Chief Judge of the Economic Division of the Provincial People's Court requests relevant agencies to appoint individuals who have sufficient capacity and are economically and legally independent from creditors and the debtor enterprise to participate in the Asset Management Team.

1 - The composition of the Asset Management Team includes:

a) One officer from the Economic Division of the Provincial People's Court appointed as Team Leader by the Chief Judge of the Economic Division of the Provincial People's Court;

b) One enforcement officer from the Enforcement Department appointed by the Head of the Enforcement Department under the Department of Justice;

c) The creditor with the largest amount of debt; in case there are multiple creditors with the same largest amount of debt, the Chief Judge of the Economic Division of the Provincial People's Court selects a number of creditors until the creditors' meeting appoints a representative for the creditors;

d) A representative of the debtor enterprise appointed by the authorized representative of the enterprise, the owner of a private enterprise, or the owner of a foreign-invested enterprise with 100% foreign capital that does not establish a Board of Management;

đ) A representative of the enterprise trade union;

e) A representative of the Department of Finance appointed by the Director of the Department of Finance;

g) A representative of the State Bank at the provincial level appointed by the Director of that bank.

2 - Depending on specific cases, the Chief Judge of the Economic Division of the Provincial People's Court may invite additional experts to join the Asset Management Team.

3 - One person may be designated to simultaneously participate in up to three Asset Management Teams. The person designated to join the Asset Management Team has the right to refuse the designation if there is a valid reason.

4 - The Asset Management Team operates under the direction of the Team Leader and is subject to supervision by the Judge.

Article 18

1 - The creditors' meeting has the right to choose its own representative to join the Asset Management Team to replace the person already designated by the Chief Judge of the Economic Division. The Chief Judge of the Economic Division may reject the choice of the creditors' meeting if there is a valid reason. In such a case, the creditors' meeting must select another representative within fifteen (15) days from the date of receipt of the notification of rejection from the Chief Judge of the Economic Division.

2 - The President of the Provincial People's Court is the final authority on all complaints related to the selection of creditor representatives joining the Asset Management Team.

Article 19

1 - The Asset Management Team is responsible for supervising and inspecting the activities of the enterprise from the issuance of the decision to initiate bankruptcy proceedings until the decision to declare bankruptcy, specifically:

a) Supervising and inspecting the implementation of the provisions set forth in Clause 2 of Article 18 and Article 23 of the Enterprise Bankruptcy Law;

b) Inspecting and supervising the signing and execution of contracts by the enterprise;

c) Supervising and inspecting the sale of products by the enterprise.

2- The Head of the Asset Management Group has the right to request the Judge to issue a decision compelling the enterprise to perform or refrain from performing certain acts aimed at preserving the enterprise's assets.

Article 20

1- Within fifteen (15) days from the expiration date of the debt demand letter, the Asset Management Group must complete the full asset inventory list, balance sheet, creditor list, and debtor list of the enterprise.

2- The asset inventory list and balance sheet must clearly record the types of assets; if the assets are chattels, they must be clearly named, described in condition, and valued.

3- The creditor list and debtor list must include the following main contents:

a) Name, address of creditors and debtors of the enterprise;

b) Amount of debt owed by each creditor and each debtor of the enterprise. It must clearly specify secured debt, partially secured debt, unsecured debt, due debt, and non-due debt. For the debtor list of the enterprise, it must also clearly specify recoverable debt and unrecoverable debt.

Article 21

1- The Asset Management Group is responsible for posting the creditor list and debtor list of the enterprise at the headquarters, branches of the enterprise, and the court handling the bankruptcy proceedings.

2- After ten (10) days from the posting date, the Asset Management Group is responsible for amending and supplementing the creditor list and debtor list according to the Judge's decision and closing these lists.

Article 22

After completing the asset inventory list as stipulated in Article 20 of this Decree, the Asset Management Group shall compare the current asset amount with the total debt the enterprise must pay; develop an asset distribution plan and propose a repayment plan for the Judge to consider and decide.

Article 23

From the moment the court issues the bankruptcy declaration decision, the enterprise loses the right to manage its assets. The Asset Management Group shall undertake the preservation of the enterprise's assets until the transfer of assets to the Asset Settlement Group is completed.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country."

At the latest five (5) days from the date of the decision to establish the Asset Settlement Group, the Asset Management Group must transfer all managed assets, documents, and papers to the Asset Settlement Group.

Article 25

The Head and members of the Asset Management Group may be subject to disciplinary action or criminal liability depending on the nature and degree of violation in the following cases; if causing damage, they must compensate:

1- Preparing an asset inventory list that does not match the actual situation;

2- Preparing a creditor list and debtor list that are false;

3- Not performing or performing inadequately the duty of supervising and inspecting the management of the enterprise's assets;

4- Causing the loss of the enterprise's assets.

X- ON THE ORGANIZATION AND OPERATIONS
OF THE ASSET SETTLEMENT GROUP

Article 26

At the latest five (5) days from the date of receiving the bankruptcy declaration decision, the Enforcement Officer must issue a decision to enforce the bankruptcy declaration decision.

Article 27

At the latest ten (10) days from the date of the enforcement decision, the Enforcement Officer must issue a decision to establish the Asset Settlement Group. The establishment decision of the Asset Settlement Group must clearly state the name, profession, position, and agency currently working for the Head, Deputy Head, and other staff; assign specific tasks to each staff member, including accountants, cashiers, warehouse keepers.

Article 28

1- The composition of the Asset Settlement Group includes:

a) An Enforcement Officer serving as the Head of the Asset Settlement Group and one staff member from the Enforcement Office under the Department of Justice appointed by the Enforcement Officer;

b) One representative from the Finance Department, appointed by the Director of the Finance Department;

c) One representative from the State Bank at the provincial level, appointed by the Director of that bank;

d) One representative from the creditors who have participated in the Asset Management Group, if more than half of the creditors do not request replacement;

đ) A representative of the enterprise trade union;

e) One representative from the bankrupt enterprise appointed by the legal representative of the enterprise, the owner of a private enterprise, the owner of an enterprise with 100% foreign investment, or the place where no Board of Directors is established.

2- In case of necessity, the Head of the Asset Settlement Group may invite additional staff to participate in activities related to asset settlement.

Article 29

When establishing the Asset Settlement Group, the Enforcement Officer has the right:

1- To request relevant agencies to appoint replacements if the appointed individuals may not be impartial or competent to perform their duties. At the latest five (5) days from the date the Enforcement Officer requests, the relevant agencies must appoint replacements;

2- To resolve creditors' requests for changing creditor representatives in the Asset Settlement Group, if deemed necessary to ensure impartiality in the performance of the Asset Settlement Group's tasks;

3- The Director of the Department of Justice is the final decision-maker regarding all complaints about changes in the Asset Settlement Group staff.

Article 30.

The Asset Settlement Group must operate according to the approved plan by the Enforcement Officer; regularly report progress and implementation status of the bankruptcy declaration decision to the Enforcement Officer. The Asset Settlement Group uses the Enforcement Office seal to carry out its tasks.

Article 31

The procedure for transferring assets from the Asset Management Group to the Asset Settlement Group is as follows:

1- Transfer all assets of the bankrupt enterprise in detail.

2- Prepare a detailed transfer record for all assets. For damaged or lost assets, a separate record must be prepared for each specific case, clearly stating the reasons and individual responsibility for the damage or loss of assets. All transfer records must be signed by the Judge, the Head of the Asset Management Group, and the Head of the Asset Settlement Group.

3- From the date of completion of the transfer, the Asset Settlement Group is responsible for preserving all assets and related documents and certificates.

Article 32

1- The Head of the Asset Settlement Group has the right to request the Judge to issue a decision to recover assets of the bankrupt enterprise currently managed by others. When recovering assets, the Head of the Asset Settlement Group must announce the bankruptcy declaration decision and the decision to enforce the bankruptcy declaration decision of the enterprise.

2- If illegally held assets of the bankrupt enterprise that have not been handed over by the Asset Management Team are discovered, the Head of the Asset Settlement Team has the right to request the Judge to issue a decision to recover such assets in accordance with the procedures stipulated in Clause 1 of this Article; at the same time, they must prepare an inventory record, verify the current status, and supplement these assets into the list of the bankrupt enterprise's assets for unified handling.

3- The Head of the Asset Settlement Team may request relevant state agencies to support the recovery of assets.

4- The recovery of assets of the bankrupt enterprise as prescribed in Article 45 of the Bankruptcy Law of Enterprises shall be carried out according to the court's decision.

Article 33

1- The Chief Enforcement Officer is responsible for establishing the Valuation Council of the bankrupt enterprise's assets. The composition of the Valuation Council includes:

a) The Head of the Asset Settlement Team serves as the Chairman of the Council;

b) A representative from the Department of Finance, designated by the Director of the Department of Finance;

c) Representatives from some related agencies, proposed by the Chief Enforcement Officer, appointed by each agency;

d) The Chief Enforcement Officer invites secured creditors, individuals, or representatives of units that purchased assets of the bankrupt enterprise within six (6) months before accepting the application to declare bankruptcy to participate in the Valuation Council when valuing those assets;

đ) Representatives of creditors, trade union representatives, or representatives of employees have the right to provide opinions on asset valuation but do not have voting rights.

2- The Valuation Council has the following duties and powers:

a) To value all assets before auctioning;

b) To value assets that are security for debts, and assets sold by the enterprise within six (6) months before accepting the application to declare bankruptcy.

3- The Valuation Council decides by majority vote; in case of equal votes, the opinion of the Chairman of the Council is decisive.

Article 34

1- The Head of the Asset Settlement Team is responsible for organizing the auction of the bankrupt enterprise's assets. The auction of the bankrupt enterprise's assets must comply with the provisions of the Enforcement of Civil Judgments Decree, guiding regulations for implementing this Decree, and must be published in central and local newspapers for three consecutive issues, at least fifteen (15) days before the auction date;

2- The sale of assets prohibited or restricted from circulation on the market must comply with relevant state regulations.

Article 35

1- The Head of the Asset Settlement Team must open a bankruptcy account at the Bank no later than five (5) days from the date of the decision to establish the Asset Settlement Team and become the account holder.

2- All funds received from the bankrupt enterprise must be deposited into the bankruptcy account no later than three (3) days from the date of receipt; if deposited late, interest penalties must be paid at the highest lending rate specified by the State Bank for commercial bank transactions during the relevant period.

Article 36

1- The distribution of remaining asset value to creditors of the bankrupt enterprise must follow the plan recorded in the bankruptcy declaration decision and the priority sequence as stipulated in Article 39 of the Bankruptcy Law of Enterprises.

2- The Head of the Asset Settlement Team must prepare a specific payment plan for each phase and report it to the Chief Enforcement Officer for approval before implementation.

3- If the creditor has an account at the Bank, the Head of the Asset Settlement Team will process the transfer of money into the creditor's account. In cases where the creditor does not have an account at the Bank, the Head of the Asset Settlement Team will notify the creditor to collect directly or send through postal service. Postal fees will be deducted from the amount the creditor receives.

Article 37

1- No later than seven (7) days from the date of completing the settlement of the bankrupt assets, the Head of the Asset Settlement Team must submit a report on the execution of the bankruptcy declaration decision. The report on the execution of the bankruptcy declaration decision must be sent to the Chief Enforcement Officer and publicly posted at the Enforcement Office premises.

2- After fifteen (15) days from the date the enforcement report is posted, if no creditor lodges a complaint, the Chief Enforcement Officer will issue a decision to terminate the execution of the bankruptcy declaration decision and conclude the operations of the Asset Settlement Team.

3- The Chief Enforcement Officer sends the report on the execution of the bankruptcy declaration decision and the report on the termination of the execution of the bankruptcy declaration decision to the Court that handled the bankruptcy, the Civil Enforcement Management Department under the Ministry of Justice, and the registration authority to remove the name of the enterprise. If the bankrupt enterprise is a state-owned enterprise or an enterprise of political or social organizations, these reports must also be sent to the agency or organization that issued the establishment decision and the financial department at the same level.

Article 38

The Chief Enforcement Officer who delays issuing decisions to enforce the bankruptcy declaration decision, to establish the Asset Settlement Team, or other decisions within their jurisdiction, or issues incorrect decisions may be subject to disciplinary action or criminal prosecution depending on the nature and severity of the violation; if damage is caused, compensation must be provided.

Article 39

The Head of the Asset Settlement Team and staff members of the Asset Settlement Team, depending on the nature and severity of the violation, in the following cases, may be subject to disciplinary action or criminal prosecution; if damage is caused, compensation must be provided:

1- Intentionally seizing assets not owned by the bankrupt enterprise or not subject to seizure; failing to seize assets, seizing assets without complying with the procedures prescribed by law;

2- Establishing the Valuation Council or organizing auctions not in accordance with prescribed procedures;

3- Failing to implement adequate asset preservation measures or engaging in actions that result in loss or damage to assets;

4- Distributing assets not in accordance with the approved payment plan;

5- Using the assets of the bankrupt enterprise improperly;

Preparing false reports on the implementation of the bankruptcy declaration decision.

Article 40

1- Decisions of the Chief Enforcement Officer and the Head of the Asset Settlement Team are binding on all individuals and organizations involved.

2. Any person who intentionally fails to comply with the decision of the Head of the Enforcement Department or the Team Leader of the Asset Settlement Team shall be subject to disciplinary action, administrative penalty, or criminal prosecution depending on the nature and extent of the violation; if damage is caused, compensation must be provided.

XI. REGARDING BANKRUPTCY COSTS

Article 41

1. Bankruptcy resolution costs include:

a) Court fees for resolving bankruptcy cases, determined by the court in accordance with the law on court fees;

b) Costs for inventorying, transporting, recovering, appraising, preserving, organizing auctions of assets; costs for convening and conducting creditor meetings (excluding travel and accommodation expenses of creditors), paid based on actual expenditures approved by the judge responsible for adjudicating the bankruptcy case; costs related to enforcing the bankruptcy declaration decision are reimbursed based on actual expenditures according to the decision of the Head of the Enforcement Department;

c) The daily remuneration for each member of the Asset Management Team, the Asset Settlement Team, the Valuation Board, and individuals participating in the enforcement of court decisions during the bankruptcy resolution process is calculated at the rate of one day's travel allowance as prescribed by the State.

2. The court fees and other costs mentioned in Clause 1 of this Article shall be paid from the value of the assets of the bankrupt enterprise.

 XII. IMPLEMENTATION PROVISIONS

Article 42 |||

The Minister of Justice, after reaching consensus with the Supreme People's Court, shall provide detailed guidance on the operational regulations of the Asset Management Team and the Asset Settlement Team.

1. The "Labor Medal" second class shall be awarded or posthumously awarded to individuals meeting one of the following criteria:

The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.

Article 44 |||

The Ministers of the ministries, heads of ministerial-level agencies, agencies under the Government, Chairpersons of the People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.