Hang Xuong Thinh Limited Liability Company was established by Hang in 2005. Due to the Covid-19 outbreak, the company has been running at a loss from March 2020. As a result, the company cannot pay off its due debts. After six months from the due date, the company has not been able to pay off the interest for the 9 billion dong loan it got from Sacombank Trang Bom in February 2019. On 14^th May 2019, Sacombank sued the company in Trang Bom People’s court. When knowing Sacombank has brought the company to court, other company creditors and Hang started a lawsuit to sue the company at Trang Bom People’s court. Under the pressure of these creditors, Hang sent a request for a bankruptcy process to Trang Bom People’s court on behalf of Hang Xuong Thinh Company on 17^th June 2021. In its request, Hang lists the company’s assets and creditors as follow:

1. Company assets:

• Cash: 0 dong
• The immovable property includes a 10.000 m2 garment factory in Giang Dien industrial park, Trang Bom, Dong Nai, which values 25 billion dongs. This factory has five fabric weaving machines, two fabric dyeing machines, and 200 sewing machines. All of these machines value 12 billion dong. The factory and machines are mortgaged to secure the 9 billion dong loan from Sacombank Trang Bom.
• The moveable property includes a 1.5 ton Hyundai truck and 2 Toyota Innova, which value 2.5 billion dongs in total. These vehicles are mortgaged to secure the 1.5 billion dong loan from ACB Trang Bom.  

2. Company creditors:

No.	Creditors	Debt amount (Dong)	Applied security measures	Due date
1	Nguyen Van Hoc	200.000.000	N/A	1st April 2021
2	Le Tien Dung	1.500.000.000	N/A	25th May 2021
3	Viet Viet Thang Limited Liability Company	2.333.123.650	N/A	2nd June 2021
4	Thai Phat Limited Liability Company	2.740.876.600	N/A	5th June 2021
5	Sacombank Trang Bom	9.540.000.000	Mortgage of property	10th December 2020
6	ACB Trang Bom	1.500.000.000	Mortgage of property	18th November 2021
Total		17.814.000.250

 

After considering Hang’s request, on 30^th June 2021, Trang Bom court replied that they refused to accept Hang’s request for a bankruptcy process.

On 5^th July 2021, the company received a Trang Bom Bureau of Civil Execution decision on distraining the company’s property to collect the debt which Hang borrowed from Huong (the debt which was not borrowed on behalf of the company). In the decision, Trang Bom Bureau of Civil Execution stated that Hang Xuong Thinh Limited Liability Company is a single-member Limited Liability Company. The company property will be Hang’s property, because the only property Hang has is the company. As a result, in order to protect Huong’s interest, it is necessary to distrain the company's assets.

Criticize the decisions of Trang Bom people’s court, and Bureau of Civil Execution in compliance with the law on enterprises 2020, and law on bankruptcy 2014.