Under which circumstances will the Court decide to terminate a plan to restore business operations? What are the legal consequences?
The Judge shall issue the decision on termination of the plan to restore business operations of an insolvent enterprise in the following cases:
- Such enterprise has fulfilled the plan to restore business operations;
- Such enterprise cannot implement the plan to restore business operations;
- The time limit for implementing the plan to restore business operations is over but the enterprise remains insolvent.
In the cases prescribed in Article 95.1(a) of the 2014 Law on Bankruptcy, that enterprise shall no longer be considered insolvent. The Judge in charge of handling the request for bankruptcy procedure initiation shall provide a written notification on the termination of the rights and obligations of the asset management officer or the asset management and liquidation enterprise.
In the cases prescribed in Article 95.1(b) or Article 95.1(c) of the 2014 Law on Bankruptcy, the Judge shall issue a Decision on the declaration of bankruptcy to the enterprise.