Conflict And Balance Of Interests In Enterprise Bankruptcy Liquidation

When enterprises fall in the liquidation of bankruptcy, various stakeholders may launch fierce competition toward the limited property that available for following distribution. Due to difference in interests demands, there will be interests conflicts inevitably between stakeholders. In this process, the interests of general creditors who originally at a disadvantage in bankruptcy liquidation have suffered severe loss for various reasons. Their limited profit share have been squeezed again and again. As a result, an unbalanced conditions between the general creditors and other creditors, which is opposite to the legislative purpose of the bankruptcy law.The great loss of general creditors’interests is the key reason of unbalanced interests in bankruptcy liquidation. So we should be care for them and give full, effective protection. Only in this way, can we coordinate the conflicts between general creditors and other stakeholders, which is designed to realize interests balance in bankruptcy liquidation.This article includs four parts:In the first part, the concept of interests conflicts is defined by author through deep understanding of interest. What’s more, this part introduces various stakeholders and their types in bankruptcy liquidation. It paves the way for next part why to realize the interests balance.In the second part, main content focuses on the theoretical analysis. Firstly, author makes a detailed legal theoretical analysis to interests balance, thus to creditor protection on the basis of the former, which is the key to interests balance in bankruptcy liquidation. The latter can be elaborated as followes:significance of creditor protection, theoretical basis of general creditors protectionIn the third part, the main contend includs:the external performance of general creditors who suffer great loss in bankruptcy liquidation.On the basis of it, the deep analysis toward reasons. The protection to general creditors is not practical and effective, which is key factor that cause the interests unbalance.In the last part, author puts forward the path of interests balance in bankruptcy liquidation,that is,discusses how to protection the interests of from three aspects. Only in this way, can we coordinate the interests conflicts between general creditors and other stakeholders, thus helps to realize the interests balance in bankruptcy liquidation.