The official website of the People’s Supreme Court has recently been updated and now features a new section for bankruptcy notices. Bankruptcy notices issued by local courts from February 2015 can be found here.

This is the very first nation-wide, publicly available database of court decisions, albeit only focusing on bankruptcy. The database is established pursuant to Article 43.1 of the Bankruptcy Law, according to which decisions to open bankruptcy procedures of the provincial Courts must be sent to the relevant parties and must be published on local newspapers and the People’s Supreme Court web portal. This would enable third parties to check the financial health of a company and enable concerned parties to an insolvent enterprise to actively participate in bankruptcy procedures where applicable.

For instance, in the latest regulation on sanctions for liquidators and banks of insolvent enterprises in bankruptcy procedures – Decree No. 67/2015/ND-CP, banks where the insolvent enterprises have accounts are required to refuse payments from insolvent enterprises’ accounts, as from the date on which the relevant courts issue the decision on bankruptcy or decision to open bankruptcy procedure, subject to limited exceptions. The new regulation is strict in that banks will be deemed in breach even when they have not been served or have not received the respective Court decisions. It is important for banks to look for bankruptcy notices on this new section of the Supreme Court’s website to avoid being sanctioned for violating this provision of Decree No. 67/2015/ND-CP.

Author

Partner, Ho Chi Minh City
Email: Oanh H.K. Nguyen

Author

Special Counsel, Ho Chi Minh City
Email: Chi Anh Tran

Write A Comment