The method of dealing with collateral assets of the bankrupt business
The Supreme People’s Court has issued Official Letter 152 / TANDTC-PC on dispute settlement of credit contracts and dealing with bad debts.
Accordingly, detailed instructions on how to deal with cases where businesses are opened bankruptcy procedures for secured creditors, including the handling method:
– When the Court is competent to handle the bankruptcy case of the business.
– After opening bankruptcy procedures, for the following cases:
- Collateral assets used to carry out business recovery procedures;
- Do not carry out business restoration procedures or unnecessary collateral assets for the implementation of business recovery procedures.
– When collateral assets is at risk of destruction or significant reduction in value.
– When collateral assets is not enough to pay the debt.
See details in Official Letter 152 / TANDTC-PC dated 19/7/2017.
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