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Insolvency Code Comparison (2006)

 

Country Cambodia Lao PDR Myanmar Thailand Vietnam Yunnan, China
Name       Bankruptcy Act 1940, Amended 1998 Law on Business Bankruptcy, Decree Guiding Law on Business Bankruptcy Law on Enterprise Bankruptcy
Enacted          1993, 1994 1986
General Application       Yes. Per 1998 Amendments, now permits insolvency workouts Mostly. Includes SOEs, Business of Political Organizations, LLCs, JSCs, 100% Foreign Enterprises, Coops Excludes those in Decree Principally SOEs, exemptions inc. utilities, enterprises with repayment guarantees < 6 months from bankruptcy proceedings application, Creditor or Debtor
Initiating Party       Creditors 66-HDBT , utilities Creditor, Agency Responsible  
Minimum Debt       Min. 1 Mn Baht if individual; 2 Mn. Baht if company or less if assets insufficient Not Stated  
Adjudicator       Court Court appointed Property Management Team Local People's Court
Conditions for Confirming Insolvency       Debtor leaves country; Business closed; Sending property outside country; Malfeasance on money alleged to be owed; court order; disregards 2> requests to pay debt, each request 30 days apart; treating one creditor preferentially vs. another creditor Two years consecutive of losses, three months not paying workers  
Actions       Issuing a temporary receiving order; proviso- petitioner must post a bond against unjustified petition;court then reviews case and can issue an absolute receiving If found bankrupt, Property Liquidation Team appointed to liquidate assets. Head of Liquidation Team opens bank account within max. five days and is owner of this bankruptcy bank account.  
Filing Date for Assets       Within two months of issue of receiving order Cash proceeds from liquidation into bankruptcy account- three days max. trademark Court issues announcement within ten days of decision, notified creditors have one month to file, notified creditors have three months to file . Freeze on activities of bankrupt enterprise commences six months prior to People's Court accepting case to declare bankrupt.
Order of asset disposal liquidation       Receiver's fee; Court fee; taxes payable with six months of bankruptcy; other debts. Not stated Claimants with Property pledged as repayment collateral; expenses associated with bankruptcy liquidation; litigation expenses; other related expenses; after the preceding, then wages, taxes owed, other bankruptcy claims
        after the preceding, then wages, taxes owed, other bankruptcy claims.    
Reorganization Workout Conditions , Petitioning party       Creditor owed min. 10 Mn. Baht; Debtor who owes min. 10 Mn. Baht; a Govt. supervisory agency Reorganize, take stock, recover loans, negotiate with creditors, seek added funding to repay debt, acquire new technology Superior department in charge of bankrupt enterprise can file with maximum period for reorganizing 2 years; superior department responsible for reorganizing activity. Can be declared bankrupt if after reorganizing period, still unable to repay debts.
Adjudicator           Superior Department of insolvent enterprise
Requirement to Notify       Yes, via Gazette, newspapers, official corporate registrar notification Yes Yes
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