Decree No. 67/2006/ND-CP guides the application of the Bankruptcy Law to special enterprises and organizations, and the operation of the Asset Management and Liquidation Team.

DECREE
Guidelines on the application of the Bankruptcy Law to special enterprises and the organization and operation of the Asset Management and Liquidation Organization
and the organization, operation of the Property Management and Liquidation Team

______________________

 THE GOVERNMENT

 Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Bankruptcy Law dated June 24, 2004;

Pursuant to the Civil Enforcement Decree dated January 14, 2004;

Considering the proposal of the Minister of Planning and Investment and after reaching consensus with the Supreme People's Court.

 DECREE

 PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides for:

1. Criteria for determining the list of special enterprises directly serving national defense and security; enterprises and cooperatives regularly and directly supplying essential public goods and services (hereinafter referred to collectively as special enterprises).

2. The application of the Bankruptcy Law to special enterprises.

3. The establishment, organizational structure, operation, and dissolution of the Asset Management and Liquidation Organization in managing and liquidating assets of enterprises and cooperatives entering bankruptcy, including special enterprises.

4. The application of the Bankruptcy Law to credit organizations and businesses operating in the financial sector shall be implemented according to separate regulations of the Government.

Article 2. Applicability

The subjects to which this Decree applies include:

Enterprises and cooperatives established and registered for business in accordance with the law, meeting the criteria and included in the list prescribed in Articles 3, 4, and 5 of Chapter II of this Decree.

The Asset Management and Liquidation Organization.

Agencies, organizations, and individuals related to the resolution of enterprise and cooperative bankruptcy proceedings.

Chapter II

DETERMINATION OF THE LIST OF SPECIAL ENTERPRISES AND APPLICATION OF THE BANKRUPTCY LAW TO SPECIAL ENTERPRISES

BANKRUPTCY LAW FOR SPECIAL ENTERPRISES

Article 3. Criteria for determining the list of special enterprises directly serving national defense and security

Special enterprises directly serving national defense and security that apply the provisions of this Decree are those enterprises that meet the following criteria:

1. Established to directly perform tasks of stability and regularity in areas and regions directly serving national defense, security, and ensuring state secrets.

2. State-owned with 100% of the charter capital.

3. Ordered by the State or assigned a stable and regular production plan to supply one or more public goods or services, or to fulfill national defense and security tasks specified in Appendix A attached to Government Decree No. 31/2005/NĐ-CP dated March 11, 2005 on the production and supply of public goods and services.

4. Have a significant position and their bankruptcy would directly affect national defense, security, and social order.

Article 4. Criteria for determining the list of enterprises and cooperatives regularly and directly supplying essential public goods and services

Enterprises and cooperatives included in the list of regular and direct suppliers of essential public goods and services that apply the provisions of this Decree must meet the following criteria:

1. Directly supply essential products and services for the economic and social life of the country and the community of a territorial area. In cases where they supply essential products and services for the community of a territorial area, they must also meet the condition of not having other enterprises or cooperatives supplying such products or services in the same area.

2. Ordered by competent state agencies or assigned a plan at prices or fees set by the State.

Article 5. Establishment and publication of the list of special enterprises

1. Based on the criteria stipulated in Articles 3 and 4 of this Decree, annually or when necessary:

a) The Minister of National Defense, the Minister of Public Security, the Director of the Government Cryptographic Agency shall establish and publish the list of special enterprises; supplement or delete the name of enterprises directly serving national defense, security, cryptography from the list of special enterprises;

b) The Minister, Head of a ministerial-level agency, agency under the Government managing industries and sectors, the Chairman of the People's Committee at provincial level shall establish and publish the list of special enterprises; supplement or delete the name of enterprises in the list of enterprises and cooperatives regularly and directly supplying essential public goods and services within their managed industries, sectors, or areas.

2. For member enterprises belonging to state-owned holding companies, subsidiaries under the group of parent company - subsidiary or economic groups, the Board of Directors of the state-owned holding company or the parent company under the group of parent company - subsidiary or economic group shall prepare a list of enterprises regularly and directly supplying essential public goods and services and propose to the Minister managing the industries and sectors, the Chairman of the People's Committee at provincial level to recognize them as special enterprises.

Article 6. Notification of filing for bankruptcy proceedings

1. When there is a request to initiate bankruptcy proceedings from the entities specified in Articles 13, 14, 15, 16, 17, and 18 of the Bankruptcy Law against special enterprises, the court receiving the request for initiating bankruptcy proceedings must notify:

a) The Ministry of National Defense, the Ministry of Public Security, the Government Cryptographic Agency, if it is a special enterprise directly serving national defense, security, cryptography;

b) The ministry, ministerial-level agency, agency under the Government managing the industry and sector and the People's Committee at provincial level, if it is an enterprise or cooperative regularly and directly supplying essential public goods and services ordered or planned by themselves;

c) The owner of the special enterprise (except in cases where the applicant is the legitimate representative of the enterprise).

2. When performing their functions and duties, if they find that special enterprises cannot pay their due debts, the court, the prosecution office, the inspection agency, the capital management agency, the auditing organization, or the agency deciding the establishment of the enterprise but not being the state owner of the enterprise must notify in writing the entities specified in Clause 1 of this Article.

Article 7. Responsibilities of state agencies and special enterprises

1. Upon receipt of notifications from the court or related state agencies about the loss of payment capacity of enterprises and cooperatives included in the list of special enterprises or information about the risk of losing payment capacity of these enterprises, the entities specified in Clause 1 of Article 6 of this Decree shall have the following responsibilities:

a) The Minister of National Defense, the Minister of Public Security, the Director of the Government Cryptographic Agency shall require special enterprises directly serving national defense, security, cryptography to prepare a written report on the risk of losing payment capacity of the enterprise;

b) The Minister, Head of a ministerial-level agency, agency under the Government managing the industry and sector, the Chairman of the People's Committee at provincial level shall require enterprises and cooperatives regularly and directly supplying essential public goods and services ordered or planned by themselves to prepare a written report on the risk of losing payment capacity of the enterprise.

2. In case of recognizing the risk of losing payment capacity, before deciding to file a request for initiating bankruptcy proceedings, the special enterprise must prepare a written report on the risk of not having the ability to pay by the legitimate representative of the enterprise signing and sending it to the owner and the relevant state management agency specified in Clause 1 of Article 6 of this Decree.

3. The report on the risk of losing payment capacity shall be prepared according to the provisions of this Decree and related laws, but at least must include the following contents:

a) The current financial status of the enterprise;

b) Causes leading to the risk of losing payment capacity and measures already applied to address it;

c) Expected measures to be taken to address it, including transferring all activities to another corresponding enterprise or merging with another enterprise;

d) Responsibilities of related individuals.

Article 8. Application of Necessary Measures to Restore Payment Capacity and Business Operations

1. Within fifteen (15) days from the date of receipt of the report, based on the authority prescribed by law and the provisions of this Decree:

a) The Minister of National Defense, the Minister of Public Security, and the Director of the Government Official Communication Board must decide to apply or not to apply necessary measures as prescribed by law to restore the payment capacity for due debts and business operations of special enterprises directly serving national defense, security, and official communication. In cases where applying necessary measures to restore the payment capacity for due debts and business operations of such enterprises exceeds the capability and authority of the Ministry of National Defense, the Ministry of Public Security, and the Government Official Communication Board, the Minister of National Defense, the Minister of Public Security, and the Director of the Government Official Communication Board must report to

b) The Minister, Head of an agency at the ministerial level, or an agency under the Government managing a sector or field, the Chairman of the People's Committee of a province, the owner of the enterprise, or cooperative regularly and directly supplying essential public goods and services must decide to apply or not to apply necessary measures to restore the payment capacity for due debts and business operations of the enterprise or cooperative.

2. In cases where it is decided to terminate the application of necessary measures to restore the payment capacity for due debts and business operations, or after applying necessary measures to restore the payment capacity and business operations but the enterprise still fails to recover and cannot pay its due debts when requested by creditors, the Minister of National Defense, the Minister of Public Security, the Director of the Government Official Communication Board, the Minister, Head of an agency at the ministerial level, or an agency under the Government managing a sector or field, the Chairman of the People's Committee of a province, the owner of the enterprise or cooperative, or the Board of Directors of a state-owned holding company or parent company with subsidiary or daughter companies as special enterprises must notify in writing the Court, the applicant, and the creditors about the non-application or termination of the application of measures to restore the payment capacity and business operations of the enterprise or cooperative.

Article 9. Acceptance of Petitions to Initiate Bankruptcy Proceedings Against Special Enterprises

The Court shall only accept petitions requesting the initiation of bankruptcy proceedings against special enterprises after receiving written notifications from the following agencies, organizations, or individuals:

1. The Minister of National Defense, the Minister of Public Security, and the Director of the Government Official Communication Board notify the non-application or termination of the application of measures to restore the payment capacity and business operations of special enterprises directly serving national defense, security, and official communication, which have failed to recover and lack the ability to pay their due debts.

2. The Minister, Head of an agency at the ministerial level, or an agency under the Government managing a sector or field, the Chairman of the People's Committee of a province, the Board of Directors of a state-owned holding company or parent company with subsidiary or daughter companies as special enterprises, the owner of the enterprise or cooperative notify the non-application or termination of the application of measures to restore the payment capacity and business operations of enterprises or cooperatives regularly and directly supplying essential public goods and services, which have failed to recover and lack the ability to pay their due debts.

Article 10. Bankruptcy Procedures

After receiving notifications of non-application or termination of measures to restore payment capacity and business operations as stipulated in Articles 8 and 9 of this Decree and implementing the procedures prescribed in Articles 22 and 23 of the Bankruptcy Law, the Judge must decide on one of the following two cases:

1. Decide to initiate bankruptcy proceedings and implement the bankruptcy procedures as prescribed by the Bankruptcy Law, this Decree, and other relevant laws for the following cases:

a) Special enterprises that have not been subject to necessary measures by the State to restore payment capacity and business operations;

b) Special enterprises that have been subject to necessary measures by the State to restore payment capacity and business operations but still cannot recover and are unable to pay due debts, with more than half of unsecured creditors representing at least two-thirds of the total amount of unsecured debt requesting the convening of a Creditors' Meeting.

2. Decide to initiate bankruptcy proceedings and immediately carry out asset liquidation procedures for special enterprises that have been subject to necessary measures by the State to restore payment capacity and business operations but still cannot recover, are unable to pay due debts when requested by creditors, and do not have more than half of unsecured creditors representing at least two-thirds of the total amount of unsecured debt requesting the convening of a Creditors' Meeting. The liquidation and declaration of bankruptcy procedures shall be carried out according to the provisions of the Bankruptcy Law, this Decree, and other relevant laws.

Article 11. Disclosure of Information for Special Enterprises Directly Serving National Defense and Security

When conducting bankruptcy procedures, the Head of the Asset Management and Liquidation Team established pursuant to Article 16 of this Decree must consult the opinions of the Ministry of National Defense, the Ministry of Public Security, and the Government Office of Official Communications regarding the disclosure of bankruptcy information for special enterprises directly serving national defense and security. In cases where disclosing such information is not beneficial to national defense and security activities, the Head of the Asset Management and Liquidation Team has the responsibility to request the Judge to decide not to publicly announce the bankruptcy information of this enterprise as would typically occur in ordinary bankruptcy cases.

Article 12. Liquidation of Assets of Special Enterprises

1. The liquidation of assets of special enterprises shall be conducted according to the following priority methods and order:

a) Auction the entire enterprise to an entity operating in the same industry or field to continue business operations;

b) Auction the entire enterprise to other entities if there are no entities operating in the same industry or field participating in the auction to purchase the enterprise for continued business operations;

c) Sell the entire enterprise directly to an entity operating in the same industry or field to continue business operations if only one person registers to purchase;

d) Auction individual assets separately if it is not possible to conduct the auction of the entire enterprise;

e) Sell assets directly if it is not possible to conduct the auction of individual assets or the value of the assets is below the threshold required for auction under the law.

2. Enterprises or assets in the fields of national defense, security, and official communications that are not allowed to be auctioned shall be sold directly to entities operating in the same industry or field to continue business operations. The list of enterprises or assets not to be auctioned to entities outside the fields of national defense, security, and official communications is specified by the Ministry of National Defense, the Ministry of Public Security, and the Government Office of Official Communications.

3. The sale of state-owned enterprises shall be carried out according to the regulations on selling enterprises as stipulated in Decision No. 80/2005/NĐ-CP dated June 22, 2005, of the Government on the transfer, sale, lease, and management of state-owned companies; and the auction of state-owned companies as stipulated in Decision No. 330/2005/QĐ-TTg dated December 13, 2005,

Article 13. Payment of Secured Debts and Return of Assets to the State

Special enterprises must fulfill the following property obligations before dividing the enterprise's assets:

1. Pay off secured debts established by collateral or pledge prior to the court accepting the bankruptcy petition for secured creditors according to Article 35 of the Bankruptcy Law.

2. Return to the state the value of assets that were used when applying necessary measures to restore payment capacity and business operations as stipulated in Article 36 of the Bankruptcy Law.

Article 14. Order of Asset Distribution

After fulfilling the property obligations as prescribed in Article 13 of this Decree, the value of the special enterprise's assets shall be distributed in the order specified in Article 37 of the Bankruptcy Law.

Chapter III

ORGANIZATION AND ACTIVITIES OF THE ASSET MANAGEMENT AND LIQUIDATION TEAM

Article 15. Composition of the Asset Management and Liquidation Team

The Asset Management and Liquidation Team consists of:

1. One enforcement officer from the enforcement agency at the same level as the court with jurisdiction over the bankruptcy petition as the Team Leader.

2. One staff member from the People's Court with jurisdiction over the bankruptcy petition.

3. A representative of the creditor organization or individual with the largest debt among the creditors.

4. A legally authorized representative of the enterprise or cooperative subject to the bankruptcy process.

5. For enterprises or cooperatives falling into bankruptcy under the following circumstances, the Judge will consider and decide on the composition of representatives participating in the Asset Management and Liquidation Team based on each case:

a) A representative of the trade union or employee representative (in places without a trade union) for enterprises or cooperatives owing wages or other debts to employees;

b) A representative of the Ministry of National Defense, the Ministry of Public Security, or the Government Office for Official Communications for special enterprises directly serving national defense, security, and official communications under the management of these agencies;

c) In cases where enterprises or cooperatives operate in banking, finance, or insurance sectors, a representative of the specialized state management agency for banking, finance, or insurance must participate in the Asset Management and Liquidation Team. If the enterprise or cooperative participates in deposit insurance, a representative of the deposit insurance organization must also participate in the Asset Management and Liquidation Team;

d) A representative of the Ministry, agency equivalent to a ministry, or government agency managing industries or fields related to public goods and services provided regularly and directly by the enterprise or cooperative; a representative of the provincial People's Committee where the enterprise or cooperative regularly and directly provides public goods and services in that province.

6. Agencies and organizations specified in Clause 5 of this Article have the responsibility to appoint representatives to participate in the Asset Management and Liquidation Team upon the request of the Judge.

Article 16. Establishment of the Asset Management and Liquidation Team

1. Simultaneously with issuing the decision to open the bankruptcy process, the Judge sends a document requesting the appointment of participants in the Asset Management and Liquidation Team to relevant agencies, organizations, and individuals as prescribed in Article 15 of this Decree. Within five working days from the date of receipt of the Judge's document, the relevant agencies, organizations, and individuals must appoint participants in the Asset Management and Liquidation Team.

2. The Judge issues a decision establishing the Asset Management and Liquidation Team to manage and liquidate the assets of enterprises or cooperatives in bankruptcy. One person may simultaneously participate in up to three Asset Management and Liquidation Teams. A person designated to participate in the Asset Management and Liquidation Team has the right to refuse such designation if there is a valid reason. In exceptional cases, an enforcement officer may simultaneously participate in six Asset Management and Liquidation Teams but must obtain the Judge's approval.

3. The decision to establish the Asset Management and Liquidation Team must clearly record the name, profession, position, and workplace of the Team Leader and other members. This decision must be immediately notified to the President of the People's Court with jurisdiction over the bankruptcy petition, the People's Procuracy at the same level, the enterprise or cooperative subject to the bankruptcy process, the petitioner requesting the opening of the bankruptcy process, and publicly posted at the court office.

Article 17. Changing the Composition of the Management and Liquidation Organization

1. In cases where the person designated refuses to join the Management and Liquidation Organization or there is evidence that the person designated to be a member of the Management and Liquidation Organization is not impartial or lacks the capacity to perform their duties, the Judge has the right to request relevant agencies or organizations to appoint a replacement. Within the latest five (5) working days from the date the Judge requests, the relevant agencies and organizations must appoint another person to replace them.

2. During the bankruptcy proceedings, if the representative of creditors in the Management and Liquidation Organization is unable to perform the tasks of the Organization, the Judge has the right to request the Creditors' Meeting to choose another representative to replace them. The creditors must organize a meeting to select a replacement within the latest five (5) working days from the date the Judge proposes.

3. Members of the Management and Liquidation Organization who are replaced have the right to appeal to the President of the People's Court with jurisdiction over the bankruptcy proceedings regarding such replacement. Within the latest five (5) working days from the date of receipt of the appeal, the President of the People's Court must examine and resolve it. The decision of the President of the People's Court is final.

Article 18. Dissolution of the Management and Liquidation Organization

The Management and Liquidation Organization shall be dissolved in the following cases:

1. The Judge issues a decision recognizing the Resolution of the Creditors' Meeting on the plan to restore business operations of the enterprise or cooperative entering bankruptcy according to Article 72 of the Bankruptcy Law.

2. The Judge issues a decision to suspend the liquidation process according to Article 85 of the Bankruptcy Law.

Article 19. Re-establishment of the Management and Liquidation Organization

In cases where the Management and Liquidation Organization has been dissolved according to Clause 1 of Article 18 of this Decree for the enterprise or cooperative to implement the Resolution of the Creditors' Meeting on the plan to restore business operations, but the enterprise or cooperative fails to implement or cannot implement the plan to restore business operations according to Clause 3 of Article 80 of the Bankruptcy Law, the Judge must issue a decision to re-establish the Management and Liquidation Organization to carry out the liquidation of the enterprise or cooperative's assets according to the provisions of the Bankruptcy Law.

Article 20. Principles and Working System of the Management and Liquidation Organization

1. The Management and Liquidation Organization operates under the direction of the Head of the Management and Liquidation Organization and is subject to supervision by the Judge. Members of the Management and Liquidation Organization perform their duties and powers as prescribed by the Bankruptcy Law, this Decree, and are responsible under the law for the performance of their duties and powers. Depending on the nature and content of each task, the Head of the Management and Liquidation Organization assigns members to perform the tasks specified in Article 10 of the Bankruptcy Law. Immediately after the decision to establish the Management and Liquidation Organization is made, the Head of the Management and Liquidation Organization must convene the first meeting to assign specific tasks to each member and announce the location and work plan of the Organization according to Article 10 of the Bankruptcy Law.

2. A session of the Management and Liquidation Organization can only be held when at least two-thirds (2/3) of the total number of members participate. Decisions of the Management and Liquidation Organization can only be passed when the majority of members present at the meeting agree, in case of equal votes, the opinion of the Head is decisive.

3. During its operation, the Management and Liquidation Organization is entitled to use the material facilities of the civil enforcement agency and the People's Court. Relevant state agencies and organizations within the scope of their functions and powers have the obligation to support the Management and Liquidation Organization in performing the assigned tasks.

4. Books and documents related to the activities of the Management and Liquidation Organization are kept at the enforcement agency, the Court, and managed by the Head of the Management and Liquidation Organization. In cases where the enterprise or cooperative is declared bankrupt and the Management and Liquidation Organization is dissolved, the files related to the activities of the Management and Liquidation Organization are kept at the People's Court handling the application to open bankruptcy proceedings. All transaction documents related to the activities of the Management and Liquidation Organization must be signed and stamped by the Judge or Enforcement Officer with authority.

5. The Management and Liquidation Organization opens a separate account to serve the management and liquidation of the bankrupt assets of enterprises or cooperatives entering bankruptcy.

6. The Head of the Management and Liquidation Organization has the right to use the seal of the Court or the enforcement agency.

7. The Head and members of the Management and Liquidation Organization are entitled to receive salaries from the agency or organization that appoints them to join the Management and Liquidation Organization; they are also entitled to remuneration as prescribed by the Ministry of Finance.

8. Costs related to the activities of the Management and Liquidation Organization are taken from the revenue of the bankrupt enterprise or cooperative. The Management and Liquidation Organization has the right to temporarily advance costs from the enforcement agency. Cost accounting must comply with current accounting regulations.

Article 21. Tasks, powers, and responsibilities of the Head of the Asset Management and Liquidation Team

1. The enforcement officer appointed as the Head of the Asset Management and Liquidation Team shall continue to participate in specialized activities at the enforcement agency and be professionally responsible to the head of the enforcement agency.

2. The Head of the Asset Management and Liquidation Team has the following tasks and powers:

a) Directing the Asset Management and Liquidation Team to perform the tasks and powers stipulated in Article 10 of the Bankruptcy Law;

b) Being responsible for all activities of the Asset Management and Liquidation Team before the Judge. In case the Head of the Asset Management and Liquidation Team is absent, they must delegate authority to another member of the team to manage the work of the Asset Management and Liquidation Team;

c) Proposing the Judge to issue a decision declaring invalid transactions carried out by the enterprise or cooperative and recovering assets that the enterprise or cooperative has traded in violation of Article 31 of the Bankruptcy Law;

d) Proposing the Judge to issue a decision compelling enterprises or cooperatives entering bankruptcy to undertake or refrain from undertaking certain actions aimed at preserving assets or serving the liquidation process or increasing the asset base of the enterprise or cooperative;

đ) In cases where enterprises or cooperatives entering bankruptcy lend assets with collateral to others but have not registered according to the provisions of the law, the Head of the Asset Management and Liquidation Team must immediately register the collateral transaction for such assets with relevant agencies as prescribed by law;

e) Proposing the Judge to issue a decision to recover assets or the difference in value of assets of enterprises or cooperatives subject to the liquidation procedure that were sold or transferred illegally in cases specified in Clause 1, Article 43 of the Bankruptcy Law;

g) Opening an account at a bank to deposit amounts received from debtors and from the auction of assets of enterprises or cooperatives subject to the liquidation procedure when necessary; being the account holder at the bank;

h) When necessary, having the right to mobilize enforcement accounting officers to assist the Asset Management and Liquidation Team in checking accounting records;

i) Deciding to apply coercive enforcement measures according to the laws on civil enforcement;

k) Closing the account upon a decision to dissolve the Asset Management and Liquidation Team;

l) Requesting relevant state agencies to support during the performance of tasks;

m) Implementing the decisions of the Judge.

3. The Head of the Asset Management and Liquidation Team is legally responsible for the performance of their tasks and powers.

Article 22. Valuation of Assets of Enterprises and Cooperatives Entering Bankruptcy

1. In cases where the Asset Management and Liquidation Team and the enterprise or cooperative cannot agree on the valuation of assets already inventoried, the Head of the Asset Management and Liquidation Team shall be responsible for hiring an organization with valuation functions or establishing a Valuation Committee to carry out this task.

2. For enterprises or cooperatives with total remaining asset values recorded in the most recent financial report of the enterprise amounting to 30 billion VND or more, organizations with valuation functions such as auditing companies, securities companies, appraisal organizations, domestic and foreign investment banks with valuation functions (hereinafter referred to as valuation organizations) shall be hired.

3. For enterprises or cooperatives with total remaining asset values recorded in the most recent financial report of the enterprise below 30 billion VND, a Valuation Committee shall be established:

a) The composition of the Valuation Committee includes: the Head of the Asset Management and Liquidation Team as Chairman of the Committee; representatives of the finance department; representatives of other relevant departments; representatives of creditors of enterprises or cooperatives entering bankruptcy; representatives of trade unions or representatives of workers as stipulated in Point a, Clause 5, Article 15 of this Decree;

b) The Valuation Committee decides by majority vote; in case of equal votes, the opinion of the Chairman of the Committee is decisive.

4. Valuation organizations and the Valuation Committee have the task of determining the minimum price of enterprises or cooperatives or of the entire asset before auction, including valuing assets that serve as collateral for loans, and assets that the enterprise or cooperative has sold within three months prior to accepting the application for initiating the bankruptcy procedure.

Article 23. Preparation of an inventory of assets of enterprises and cooperatives

1. The asset management and liquidation team shall prepare a comprehensive inventory of all current assets of the enterprise or cooperative, including cash, shares, bonds, securities, and property rights.

In cases where necessary, the asset management and liquidation team may dispatch members or directly work with the lawful representatives of relevant agencies, organizations, enterprises, or individuals to clarify the situation regarding the assets of the enterprise.

2. The asset inventory must be approved by the asset management and liquidation team, signed by the team leader, and submitted to the Judge. If additional assets are discovered, the asset management and liquidation team shall decide to adjust, modify, or supplement the asset inventory and report to the Judge.

Article 24. Supervision and inspection of enterprises and cooperatives undergoing bankruptcy proceedings

1. After the decision to open bankruptcy proceedings for the enterprise or cooperative, the asset management and liquidation team assigns members to carry out the task of supervising and inspecting the use of assets by the enterprise or cooperative.

2. The supervision and inspection shall be conducted on prohibited and restricted acts as stipulated in Article 31 of the Bankruptcy Law and on the following activities:

a) Signing and implementing contracts;

b) Using, preserving, and transferring assets outside of contracts;

c) Settling debts arising after the decision to open bankruptcy proceedings.

Article 25. Request for emergency provisional measures

In cases of necessity, the asset management and liquidation team has the right to request the Judge to issue a decision to apply emergency provisional measures to preserve the assets of the enterprise or cooperative in a state of bankruptcy as provided for in Article 55 of the Bankruptcy Law. The application of emergency provisional measures shall be carried out in accordance with the Civil Procedure Code, the Enforcement of Civil Judgments Ordinance, and other guiding legal documents.

Article 26. Preparation of creditor lists and debtor lists

1. Based on accounting books and debt notices, the asset management and liquidation team shall prepare a list of creditors and the amount owed to each creditor; a list of debtors and the amount owed by the enterprise or cooperative in a state of bankruptcy.

2. Within fifteen days from the deadline for submitting debt claims, the asset management and liquidation team must complete the creditor list and the amount owed. The creditor list must include the following main contents:

a) Name, address of the creditor;

b) Amount owed by each creditor, including secured debt, partially secured debt, unsecured debt, due debt, non-due debt, and ownerless debt.

3. Simultaneously with preparing the creditor list and the amount owed, the asset management and liquidation team must prepare a list of debtors and the amount owed by the enterprise or cooperative in a state of bankruptcy.

The debtor list includes the following main contents:

a) Name, address of the debtor;

b) Amount owed by each debtor, clearly distinguishing between secured debt, partially secured debt, unsecured debt, due debt, non-due debt, recoverable debt, and unrecoverable debt.

4. The creditor list and the debtor list must be publicly posted at the headquarters of the court conducting the bankruptcy proceedings and the main office of the enterprise or cooperative in a state of bankruptcy within ten working days from the date of posting.

In cases of force majeure or objective obstacles, the period during which such events occur does not count towards the posting period. Upon expiration of the posting period, the asset management and liquidation team is responsible for amending and supplementing the creditor list and the debtor list according to the Judge's decision and closing these lists. The enterprise or cooperative in a state of bankruptcy has the right to lodge complaints about the creditor list and the debtor list. Within three working days from the date of receipt of the complaint, the court must examine and resolve these complaints.

Article 27. Recovery and Management of Assets, Documents, Accounting Books, and Seals of Enterprises and Cooperatives Subject to Asset Liquidation Procedures

1. Immediately upon the effective date of the decision to initiate asset liquidation procedures, the Asset Management and Liquidation Team shall carry out the recovery and management of assets, documents, accounting books, and seals of enterprises and cooperatives subject to asset liquidation procedures.

2. The inventory listing, valuation, and preservation of recovered assets shall be carried out in accordance with the provisions of the Civil Procedure Code and the Civil Enforcement Decree:

a) The recovery of assets must be recorded in three (3) minutes; specifying the name, quantity, type, condition, value of the assets (if valued), opinions of the enterprise or cooperative subject to liquidation procedures, and signatures of the asset recovery staff and representatives of participating agencies (if applicable).

b) For immovable or movable assets that are difficult to transport or transport at excessively high costs, measures for preservation must be taken; if beyond permissible capacity, immediate reports must be made to the Judge and Head of the enforcement agency for appropriate handling.

c) The recovery of property rights must be notified to relevant state agencies and persons with related rights and interests.

3. Within thirty (30) days from the date the Court issues the decision to initiate asset liquidation procedures, the Asset Management and Liquidation Team is responsible for returning assets to the lessors or lenders when enterprises or cooperatives have leased or borrowed assets for business operations, upon presentation of ownership certificates, lease contracts, or loan agreements. In case of disputes, the Court will resolve them according to the law.

Article 28. Organization of Auctioning Assets of Enterprises and Cooperatives Subject to Asset Liquidation Procedures

The sale of assets of enterprises and cooperatives subject to asset liquidation procedures shall be conducted as follows:

1. The Head of the Asset Management and Liquidation Team is responsible for organizing the auction of assets of enterprises and cooperatives declared bankrupt. The auction of assets of enterprises and cooperatives declared bankrupt must comply with the provisions of Clauses 1, 2, and 4 of Article 47 and Article 48 of the Civil Enforcement Decree and Decree No. 05/2005/NĐ-CP dated January 18, 2005 of the Government on Auctioning Assets. Sales of assets prohibited or restricted from circulation on the market must follow relevant legal regulations.

2. For special enterprises, the organization of the auction of such enterprises must comply with the provisions of Article 12 of this Decree. The Asset Management and Liquidation Team organizes the auction of special enterprises.

3. All proceeds from the sale of assets of bankrupt enterprises and cooperatives must be deposited into the account of the Asset Management and Liquidation Team no later than three (3) working days from the date of receipt of funds; late deposits will incur penalties at the basic interest rate published by the State Bank at the time of asset liquidation.

Article 29. Development and Implementation of Asset Distribution Plans

1. The Head of the Asset Management and Liquidation Team is responsible for developing asset distribution plans and repayment schedules for the Judge's review and decision; implementing the asset distribution plan of enterprises and cooperatives subject to asset liquidation procedures for creditors in accordance with the Judge's decision and priority order as stipulated in this Decree.

2. Payment methods for creditors shall be agreed upon but not contrary to legal provisions. Costs associated with creditor payments shall be deducted from the amount due to the creditor.

Article 30. Report on the Implementation of the Asset Distribution Plan

1. Within seven (7) working days from the date of completion of the asset distribution plan, the Head of the Asset Management and Liquidation Team shall prepare a report on the implementation of the asset distribution plan to be submitted to the Judge and publicly posted at the court's office handling the case.

2. Within fifteen (15) days from the date the results of the asset distribution plan implementation report are publicly posted, if there is no creditor objection, the Judge shall issue a decision to terminate the liquidation procedure, followed by a decision declaring bankruptcy for the enterprise or cooperative.

Article 31. Effectiveness of Decisions of the Head of the Asset Management and Liquidation Team

1. The decisions of the Head of the Asset Management and Liquidation Team have compulsory enforcement power over all individuals and organizations involved.

2. Any person who fails to comply with the decisions of the Head of the Asset Management and Liquidation Team shall, depending on the nature and degree of violation, be subject to disciplinary action, administrative penalties, or criminal prosecution; if damage is caused, compensation must be provided.

Article 32. Liability for Compensation of Damage by the Asset Management and Liquidation Team

1. During the performance of assigned tasks, if the Head and staff of the Asset Management and Liquidation Team violate this regulation, they may be subject to disciplinary action or criminal prosecution according to the provisions of the law, depending on the nature and degree of violation.

2. If any of the following violations occur and cause damage, the Head and staff of the Asset Management and Liquidation Team must compensate for the damage:

a) Preparing an inventory of assets that does not reflect the actual situation;

b) Failing to perform or fully perform the duty of inspecting and supervising the use of assets, resulting in the loss of enterprise or cooperative assets;

c) Failing to request the Judge to decide on applying urgent temporary measures to secure the assets of the enterprise or cooperative when necessary, leading to the loss of enterprise or cooperative assets in debt;

d) Listing creditors or debtors inaccurately;

đ) Engaging in acts causing the loss or damage of enterprise or cooperative assets in debt;

e) Distributing assets inconsistently with the approved asset distribution plan by the Judge;

g) Failing to detect and request the Judge to issue a decision to recover the asset, the value of the asset, or the difference in the value of the asset sold or transferred illegally as stipulated in Clause 1, Article 43 of the Bankruptcy Law;

h) Failing to comply with the legal regulations on auctioning the assets of enterprises or cooperatives subject to liquidation procedures;

i) Using the assets of enterprises or cooperatives improperly;

k) Submitting false reports on the implementation of bankruptcy decisions.

Article 33. Awards

The Head and staff of the Asset Management and Liquidation Team who achieve outstanding results in implementing this Decree shall be considered for awards according to the legal provisions on competition and rewards.

Chapter IV

IMPLEMENTING PROVISIONS

Article 34. Effective Date

1. This Decree takes effect fifteen (15) days from the date of publication in the Official Gazette.

2. The Ministry of National Defense, the Ministry of Public Security, the Government Cryptographic Agency, the Ministry of Planning and Investment shall coordinate with the Supreme People's Court and relevant ministries and sectors to guide the implementation of this Decree.

3. The Ministers, Heads of Ministries equivalent to ministries, Heads of government agencies, Chairmen of provincial People's Committees under the central city, are responsible for enforcing this Decree./.