What do they do?
According to the 2014 Bankruptcy Law, a trustee is an individual who practices the management and liquidation of assets of insolvent enterprises and cooperatives during the bankruptcy process. According to the Department of Justice, currently the whole province has only 5 trustees with practice certificates, mostly lawyers working part-time. In fact, in Hai Duong, there are currently a number of bankrupt enterprises that need to be resolved, but the number of trustees is very small, most of them work part-time, so there is no guarantee of personnel to participate in resolving all cases.
By early 2017, for many reasons, NT Company Limited in Hai Duong City had to operate at a standstill. In 2019, due to the impact of the Covid-19 epidemic, this enterprise could not operate, its revenue was not enough to pay for workers' expenses, and it lost its ability to pay. Given this situation, the legal representative of NT Company Limited filed a petition to the Hai Duong City People's Court to open bankruptcy proceedings.
The People's Court of Hai Duong City has issued a decision to open bankruptcy proceedings and appoint a trustee. After receiving the relevant documents and files, the trustee has studied the files, investigated and verified the assets of the enterprise. The trustee had difficulty in investigating the assets at the enterprise's registered business headquarters. When the trustee arrived to work, the headquarters had been rented to another enterprise, so it could not be verified. After the prescribed listing period ends, the trustee will submit a report to the People's Court of Hai Duong City reporting the results of the bankruptcy settlement and requesting the court to convene a creditors' meeting and has declared NT Company Limited bankrupt.
Difficult practice
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Ms. Vu Thi Tu Minh is a trustee working at a law firm in Hai Duong City. According to Ms. Tu Minh, most businesses that have filed for bankruptcy have little or no assets left to pay for the bankruptcy case and court fees. Some businesses do not cooperate during the bankruptcy process, making it difficult to resolve. In many cases, the trustee repeatedly requests to provide documents and files, but the business does not provide them or does not provide them in full. Although the Bankruptcy Law clearly stipulates the responsibility to provide relevant documents and evidence, the law does not have specific regulations on how to handle those who do not submit documents and evidence.
According to the provisions of the Bankruptcy Law, the total time for inventorying and determining the value of an enterprise's assets must not exceed 90 days. With such a short time, determining the value of an enterprise's assets will encounter many difficulties because many enterprises have assets distributed in many provinces, cities, and even many different countries.
The current Bankruptcy Law does not have any regulations on revaluation of assets when they are worn out or have decreased in value due to multiple auctions but no buyers have been found. In addition, there are no regulations on whether to re-auction the assets if the auction fails or not; regulations on valuation and auction of assets of enterprises located abroad...
Administrator Pham Thi Diu, Vice President of the Hai Duong Provincial Bar Association, said that due to the many problems and shortcomings in the legal provisions mentioned above, the 2014 Bankruptcy Law needs to be amended and supplemented, contributing to promoting the bankruptcy settlement process, ensuring the effectiveness and consistency of the bankruptcy legal system. This also creates conditions for administrators to promote and perform their role well in the process of participating in the settlement of bankruptcy cases.
"Before the court accepts the petition to open bankruptcy proceedings at the request of the petitioner, it should audit the enterprise requesting the opening of bankruptcy proceedings to see if it still has assets. If there are no assets, the court will apply the simplified bankruptcy procedure, without the participation of the administrator, which will help resolve the case quickly and reduce many costs...", Ms. Diu suggested.
SUCCESSSource: https://baohaiduong.vn/nhung-dieu-it-biet-ve-nghe-quan-tai-vien-411352.html
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