Creditors' meeting in bankruptcy proceedings

According to Article 61 of the Bankruptcy and Recovery Law 2025, the Court must convene a Creditors' Meeting after completing the inventory of the assets of the enterprise or cooperative, except in cases where the law stipulates that a Creditors' Meeting is not required. The meeting may also be convened when it is necessary to decide on matters within the jurisdiction of the Creditors' Meeting.

Time of organization

The timing of the creditors' meeting is determined according to the progress of the bankruptcy proceedings and the company's asset status. Therefore, a fixed date of "20 days from the date of compiling the list of creditors" as stipulated in the old regulations should not be applied.

• The court convenes a creditors' meeting after completing the inventory of assets or when it is necessary to decide on matters within the meeting's jurisdiction.
• The list of creditors and debtors must be publicly available on the National Electronic Portal for Business and Cooperative Recovery and Bankruptcy, at least for a certain period. 7 days before the Creditors' Meeting..
• In cases where a creditors' meeting is not required under the Bankruptcy and Rehabilitation Law, the meeting shall not be convened.

The convener and presiding officer

The creditors' meeting is held under the summons of the Court and requires the participation of the parties as stipulated by law.

• Court: Convening a creditors' meeting and resolving matters within their jurisdiction during bankruptcy proceedings.
• The receiver or the business that manages and liquidates the assets: Preside over the creditors' meeting and perform related duties as prescribed.
• The applicant and the owner or legal representative of the enterprise or cooperative: Attendance at the Conference is mandatory; if unable to attend, a person must be authorized in writing to attend on their behalf.

Participants

The composition of the Creditors' Meeting depends on the rights and obligations of each party in the bankruptcy proceedings. These parties may include:

• Creditors Included in the list of creditors as stipulated.
• The applicant is requesting the initiation of bankruptcy proceedings.
• The owner or legal representative of the enterprise or cooperative.
• An insolvency administrator or a business entity manages and liquidates assets.
• Workers, worker representatives, and other stakeholders They have the right and obligation to participate as stipulated in the Law on Bankruptcy and Recovery.

A creditors' meeting not only considers whether a business is bankrupt but can also decide on various other solutions:

• Suggestion Suspension of bankruptcy proceedings In cases where the legally required conditions are met.
• Through business recovery plan and request the court to recognize it.
• Suggestion Declaration of bankruptcy for businesses and cooperatives.
• Decisions regarding the transfer of part or all of a business, business operation, or asset are made in accordance with regulations.
• Other matters fall within the jurisdiction of the Creditors' Meeting.

Conditions for adopting the resolution

Resolutions of the creditors' meeting are adopted when a sufficient number of creditors vote in favor. representing at least 65% total unsecured creditors. The resolution, adopted under legally mandated conditions, is binding on creditors.

If the creditors' meeting fails to pass a resolution on important matters as stipulated by law, the court may issue a decision declaring the enterprise or cooperative bankrupt in accordance with regulations.

Review the resolution of the Creditors' Meeting.

A party with the right or obligation to participate in the Creditors' Meeting who disagrees with the resolution has the right to submit a request for reconsideration within the specified timeframe. 05 working days From the date of receipt of the resolution, the Chief Justice of the court handling the bankruptcy proceedings may uphold the resolution or decide to reconvene the creditors' meeting as prescribed.

The minutes of the creditors' meeting are a document recording the proceedings, attendees, opinions, and voting results of the creditors' meeting. The minutes are one of the important documents for determining the issues considered and decided upon at the meeting, and serve as the basis for the court to handle the next steps in the recovery and bankruptcy proceedings.

The minutes should fully and accurately reflect the proceedings of the meeting and the decisions adopted. When preparing the minutes, the following key points should be noted:

• Time and location: Specify the date, time, and location of the Creditors' Meeting.
• Participants: Record the attendees, their capacity to participate, and the number of creditors present or legally represented.
• Content and proceedings of the Conference: Record the issues presented, discussed, and opinions of the participating parties, as well as the issues put to a vote.
• Voting results: Clearly state the voting results for each item, including the number of creditors and the percentage of debt used to determine the results as required by law.
• Resolution or decision of the Conference: Record fully all contents approved by the creditors' meeting, such as the business recovery plan or the request for bankruptcy declaration.
• Other opinions from attendees: Any reservations, objections, or suggestions should be recorded in the minutes, if any.
• Signature and confirmation: Minutes must be prepared and certified in accordance with the regulations regarding creditors' meetings and the person responsible for preparing the minutes.

Storing and using records: The minutes of the creditors' meeting should be kept with the case file regarding the recovery and bankruptcy proceedings and used as a basis for considering and resolving subsequent steps. The content of the minutes must accurately reflect the results of the meeting, especially regarding issues related to the recovery plan, asset disposal, and bankruptcy declaration.

A business recovery plan serves as the basis for enterprises and cooperatives to overcome insolvency and continue operations. The plan must outline recovery measures in accordance with the law, and clearly define the conditions, deadlines, and payment schedule for outstanding debts. According to the Bankruptcy and Recovery Law of 2025, the plan is reviewed and approved at the creditors' meeting before being recognized by the judge as stipulated.

The creditors' meeting considers the recovery plan based on the creditors' voting results and the conditions under the Bankruptcy and Recovery Law. For a resolution approving the recovery plan, the number of creditors voting in favor must represent... At least 65% total unsecured debt as per regulations.

• Achieved the required voting percentage: The number of approving creditors must represent at least 65% of the total unsecured debt.
• The proposed plan has a basis for implementation: Rehabilitation measures must be appropriate to actual operations and not violate legal regulations.
• Ensure payment plan is in place: The plan must specify the conditions, deadlines, and payment schedule for debts in the order of legally mandated priority.
• Recognized by the Court: After the creditors' meeting approves the resolution, the judge reviews it and makes a decision to recognize it as prescribed.

The recovery plan must specifically outline measures to help businesses and cooperatives restore their business operations and solvency. The law does not limit the plan to a single form, provided that the proposed measures do not violate regulations and are feasible.

• Business recovery measures: Identify appropriate solutions to maintain, reorganize, or restore business operations.
• Raising capital: To provide additional capital or mobilize the necessary financial resources for the recovery process.
• Handling and restructuring debts: Propose terms, deadlines, and payment plans for debts that are consistent with the company's financial capacity.
• Reorganize operations: Restructure the organizational structure, industries, production and business activities, or apply other appropriate measures.
• Asset disposal: Options such as selling, leasing, or utilizing the assets to generate resources for recovery may be applied, provided they comply with legal regulations.
• Other measures: Other recovery solutions that do not violate the law may be proposed.

The timeframe for implementing the recovery plan is determined by the creditors' meeting and recorded in the resolution adopting the plan. If the creditors' meeting does not specify a timeframe, the duration of the recovery plan will be determined. Not more than 3 years from the date the Creditors' Meeting approved the plan..

After the judge recognizes the resolution of the creditors' meeting, the enterprise or cooperative implements the recovery plan and is subject to supervision as prescribed. Periodically once every 3 months, Businesses and cooperatives must report on the implementation of their recovery plans to the legally mandated supervisory bodies.