On 08 August 2018, the Finance of Ministry promulgated Circular No. 69/2018/TT-BTC guidance for restructuring State-owned Enterprise that not eligible for equitization under paragraph 2 Article 3 Decree No. 126/2017/NĐ-CP on 16 November 2017 via resolving debt to transfer to be a joint stock company. This Circular will take effective on 01 October 2018
Accordingly, the method of restructuring is exercised base on the agreement principle between the representative organ of the enterprise’s owner restructuring and debt trading company or creditors join in restructuring. Debt trading company has the right to negotiate for buying the debt with debt owner and propose the restructure way for the enterprise that is in accordance with the law.
Debt trading company decides to buy the debt after negotiation, agreement with the representative organ of the enterprise’s owner and the result of the debt buying negotiation with creditors of restructuring enterprise.
For the financial handling of restructuring enterprise, restructuring enterprise shall carry out financial handling when valuing enterprises according to Decree No. 126/2017/NĐ-CP and Circular No. 41/2018/TT-BTC. In case of financial handling according to the restructuring method, it must be attached to the restructuring plan already approved by the representative agency.
For the sale of shares at the first time, mode of sale and selling prices of shares for the first time under regulation at Decree No. 126/2017/NĐ-CP and Circular No. 41/2018/TT-BTC. In which, base on sub-paragraph d paragraph 1 and 3 Article 42 Decree No. 126/2017/NĐ-CP, the owner representative organ decides the shares price for labors and trade union organization at restructuring enterprise is not less than 60% of the face value of shares.
Debt trading companies and debtors participating in corporate restructuring are transformed into debt-to-equity shares in accordance with the principle of agreement and approved by the owner’s representative office in the restructuring plan. For shares not sold out, enterprises shall have responsibility for the handling according to the provisions of the Government’s Decree No. 126/2017/ND-CP and Circular No. 40/2018/TT-BTC.
Regarding policies for redundant laborers in restructuring enterprises, to comply with the State’s current regulations on State enterprises upon equitization. Funds will be made on the principle that the proceeds from the sale of shares after subtracting the total par value of the sold shares shall be used to pay the redundant employees.
Circular 69/2018 / TT-BTC was promulgated to remove existing problems and raise the efficiency of restructuring State owned Enterprises failing to meet the conditions for equitization.