VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership See 2.9.1. Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisa- tions, Insolvencies and Liquidations . 2.9.3 Co-Ordination, Recognition or Relief in Connection With Overseas Proceedings See 2.9.1. Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisa- As the IDERA is an official document under the Cape Town Convention, which is irrevocably granted by the lessee and is registered with CAAV, it will remain effec - tive after the liquidation of the lessee. The deregistra - tion power of attorney will be considered terminated once the lessee is officially declared to be insolvent (ie, once it no longer exists). 2.9.5 Other Effects of a Lessee’s Insolvency If a lessee in possession of an aircraft is put into liq - uidation or administration: • the aircraft will not be considered the lessee’s asset. Under Vietnamese law, within ten days from the date of declaration of insolvency, the owner or lessor can provide the necessary documents to the Civil Judgment Enforcement Agency as evidence of the lease agreement with the lessee, with the aim of reclaiming the aircraft. However, the lease agreement can be reviewed by the official receiver; • the repossession of the aircraft can be delayed on termination of the lease as the termination can be reviewed and challenged by the official receiver; and • the liquidator or administrator will not prioritise the rights of any other creditors over the lessor’s rights. However, the secured creditor naturally has rights over the asset, which are secured by the debtor before the receivership order and need not file a debt repayment application. tions, Insolvencies and Liquidations . 2.9.4 Effect of Lessee’s Insolvency on a Deregistration Power of Attorney
2.9.6 Risks for a Lender if a Borrower, Guarantor or Security Provider Becomes Insolvent The unsecured assets of the lender will be managed by the official receiver. The assets will generally be sold at a public auction and the money received by the official receiver will be distributed to all creditors who have submitted their debt repayment application on a pro rata basis. If the aircraft owner or lessor can - not prove its legitimate rights to the official receiver, there will be a risk that the aircraft is considered an unsecured asset of the lessee and subject to a public auction. 2.9.7 Imposition of Moratoria in Connection With Insolvency Proceedings Under the Law on Bankruptcy, after the decision on the commencement of bankruptcy is made, the insol - • paying unsecured debts, except the unsecured debts incurred after the initiation of bankruptcy proceedings and the employees’ salaries pre - scribed in the Law on Bankruptcy; • renouncing the right over debt claims; and • turning an unsecured debt into a secured or partly secured debt with collateral consisting of assets of the entity. Any transaction of this kind is invalid and will be han - dled according to the relevant Article in the Law on Bankruptcy. vent entity is prohibited from: • dispersing and hiding assets; The interim injunction, including different moratoria (eg, prohibiting transferring the rights to the assets of the insolvent entity or blocking the bank account of the entity) can be applied during the handling of the bankruptcy process. 2.9.8 Liquidation of Domestic Lessees The eligible parties can file a bankruptcy request against the lessee before the court so that the domes - tic lessee can be liquidated or placed in administration or receivership. 2.9.9 Ipso Facto Defaults To repossess an aircraft during a lessee’s insolvency proceeding, the automatic prohibitions mentioned in
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