According to this document, enterprises or cooperatives will be declared insolvent as per clause 1 of Article 4 in the Law on Bankruptcy if the following conditions exist:
- They owe particular and explicit debts:
+ admitted to or agreed upon by involved parties;
+ or testified by judgements or decisions legally entering into force of courts, awards of commercial arbitrations;
+ or stated in decisions of competent regulatory authorities and parties and about which it is declared that no dispute exists.
- They owe debts due: These debts are those of which payment due dates are specified and enterprises or cooperatives as debtors are obliged to repay debts by these dates;
Payment due dates must be:
+ admitted to or agreed upon by involved parties;
+ or stated by judgements or decisions legally in effect of Courts, awards of commercial arbitrations or decisions of competent authorities.
- Enterprises or cooperatives as debtors fail to fulfill debt obligations during the 3-month duration starting from payment due dates, including 2 cases:
+ Enterprises or cooperatives as debtors do not have assets to repay debts;
+ Enterprises or cooperatives as debtors refuse to repay debts though they have their own assets.
For more details, please read the Official Dispatch No. 199/TANDTC-PC issued on December 18, 2020.
>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE
806