Workshop Out-of-Court Workouts
On December 18 and 19, 2024, the Vietnam Banks Association (VNBA), in collaboration with the International Finance Corporation (IFC) under the World Bank Group (WBG), organized the Workshop “Out-of-Court Workouts: Insights and Best Practices from the Field” and the Training on “Out-of-Court Workouts and Alternative Methods of Resolving NPLs.”
According to international practice, Out-of-Court Workouts (OCW) is a negotiation/mediation method (with the participation of a third party) to restructure debts with the participation of multiple creditors and a debtor facing financial distress. The mechanism helps indebted enterprises overcome financial distress, restore business operations, and avoid insolvency, benefit other stakeholders (employees, customers, suppliers, investors, etc.). This mechanism helps to relieve pressure on the Courts in resolving disputes, and bankruptcy cases, contributing to the sustainability of the financial system, promoting economic growth, and reducing the unemployment rate, etc.
Based on international good practices and World Bank guidance, the WBG’s expert team proposes an OCW framework for Vietnamese banks, in accordance with international standards and Vietnamese applicable laws.
At the Workshop and Training, Mr. Nguyen Hung Quang (Managing Partner of NHQuang&Associates, President of Vietnam International Commercial Mediation Center (VICMC)), acting as the National Consultant of the World Bank Group, presented an overview of the Draft Model OCW principles and participated in coordinating the turnaround exercise for a hypothetical scenario where a debt due needs to be restructured with multiple creditors.
Attending the Workshop and the Training were Mr. Nguyen Quoc Hung – Vice President and General Secretary of the Vietnam Banks Association, chairing the Workshop and the Training, Ms. Nina Pavlova Mocheva – Senior Financial Sector Specialist of the World Bank Group, Mr. Peter Gothard – Asia Pacific Head of Turnaround & Restructuring, KMPG and leader, in-house lawyers in charge of debt resolving of Vietnamese banks.
Dispute resolution in court, arbitration and especially negotiation and mediation have been one of the strengths of NHQuang&Associates for many years. In addition to experiences in practical dispute resolution, Mr. Nguyen Hung Quang and the associates have also conducted many studies on the Court system, litigation procedures for commercial dispute resolution in court, systematic investor response mechanisms, commercial mediation, commercial arbitration and supported for national student competitions on commercial mediation and arbitration.