Circular No. 05/2022/TT-BTC dated February 8th, 2022 of the Ministry of Finance on providing instructions on restructuring of companies ineligible for equitization and disposition of blocks of shares and receivables of wholly state-owned enterprises having the functions of buying, selling and managing debts and assets

This Circular regulates in details principles of, procedures for, and responsibilities of parties participating in restructuring of state-owned enterprises for equitization and disposing of blocks of shares and receivables of enterprises having the functions of trading debts.

Notably, the restructuring by the mode of debt trading for equitization regulated at this Circular is only applies to state-owned enterprises ineligible for equitization because their actual corporate value is lower than their payables after the re-valuation.

Vietnam Debt and Asset Trading Company or creditors participating in the corporate restructuring process may convert debts/loans into share capital according to the agreement principles and the consent from the owner’s representative agency in the restructuring plan.

This Circular takes effect from April 1st, 2022. To replace Circular No. 69/2018/TT-BTC dated August 8th, 2018 and Circular No. 50/2019/TT-BTC dated August 8th, 2019.