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When does the Court issue the decision on the declaration of bankruptcy?

The Court will issue the decision on the declaration of bankruptcy in the following cases:

(i) Within 15 days after receiving the report on the results of the creditors’ meeting, the Court will issue a decision on the declaration of bankruptcy to the enterprise when:

    • The meeting of creditors fails to meet the conditions to convene for a second time;
    • The meeting of creditors fails to meet the conditions to approve the resolution;
    • The plan to restore business operations is not approved by the meeting of creditors.

(ii) Within 15 days after receiving the resolution of the creditors’ meeting on requesting the declaration of bankruptcy under Article 83.1(c) of the 2014 Law on Bankruptcy, the Court shall consider whether to declare the bankruptcy of an enterprise.

(iii) After the meeting of creditors adopts the Resolution applying the plan to restore business operations, the People’s Court shall issue a Decision to declare bankruptcy in the following cases:

    • The enterprise cannot formulate a plan to restore business operations before the time limit prescribed in Article 87.1 of the 2014 Law on Bankruptcy;
    • The meeting of creditors does not adopt the plan to restore business operations of the enterprise;
    • The enterprise cannot implement the plan to restore business operations.

(iv) In cases that the People’s Court applies a simplified procedure: within 30 days after issuing a notice to bankruptcy procedure participants that the case is settled according to the simplified procedure, the Court shall consider and declare bankruptcy or continue to handle the case by using the regular procedures and provide notice to all involved entities.

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