Chương I Luật phá sản doanh nghiệp 1993: Những quy định chung

Chapter I

GENERAL PROVISIONS

Article 1

The present Law applies to enterprises under all forms of ownership which have been established and operated in accordance with the law of the Socialist Republic of Vietnam while getting into the state of bankruptcy.

The Government issues concrete regulations on the implementation of this Law in regard to enterprises directly servicing defence, security and important public services.

Article 2

An enterprise getting into the state of bankruptcy is an enterprise which is meeting difficulties or bearing losses in its business activity and after applying all necessary financial measures is still unable to pay mature debts.

Article 3

In this Law, terms below are understood as follows:

1. A "secured creditor" is a creditor whose loan is secured by the property of the indebted enterprises.

2. "Partially secured creditor" is a creditor whose loan is secured by property of the indebted enterprises, but the value of this property is less than value of the loan.

3. "Unsecured creditor" is a creditor whose loan is not secured by property of the indebted enterprises.

4. "Legal representative of the enterprise" is a person empowered by the enterprise's owner in accordance with the provisions of law.

Article 4

1. People's courts of provinces, of cities under central management (hereafter called generally courts) and the People's Supreme Court are organs having jurisdiction to settle a request for the declaration of an enterprise's bankruptcy.

2. The enforcement office for judgements under the Department of Justice, and the department for enforcement of civil judgements under the Ministry of Justice have jurisdiction to implement the decision on an enterprise's bankruptcy declaration.

Article 5

The Institutes of People's Inspection inspects the observance of laws during the settling of the bankruptcy of enterprises as stipulated by law.

Article 6

Voluntary conciliation between the creditors and the indebted enterprise, guarantee or repurchase of debts of enterprises getting into the state of bankruptcy are settled preferentially prior to the day the court decides to begin the case to resolve the request for an enterprise's bankruptcy declaration.