The Interest Protection Of Secured Creditors By Reorganization Procedure

With the introduction of reorganization, the restructuring procedure to guarantee the interest of the secured creditors has received lots of attention from the theorists of the bankruptcy law, including some scholars from many countries and regions who have already had certain findings as to this issue. Through the theoretical analysis of the problem, this paper suggests that we should encourage reorganization to the utmost and achieve the maximum of social benefits on the basis of not harming the obligee’s interests. Moreover, combining with some perfect proposals are brought forward after the research of advanced experience in some countries, like England, the U.S., Japan and so on.The first chapter mainly talks about concept definition, providing premise and basis for the following reasoning. Through comparative study, the first part points out the concept of reform, which refers to a positive procedure to save those debtors, who have already had the cause of bankruptcy, or are hopeful to regenerate after bankruptcy, and simply introduces the characters of it. The second part defines the secured creditors which are effectively formed after the bankruptcy petition or before the court accepts the case, moreover, it is reorganization creditors’right which declares specific property of the debtors who enjoy security of property.The second chapter is the theoretical basis of this topic. The first part presents the value function of security interests whose main value lies in protecting the obligation right. The second part talks about the value goal of reorganization, namely, with a core of maintaining the interests of the whole society and giving consideration to the benefits of creditors and debtors. The third part indicates the importance for reforming procedures to limit the interests of secured obliges. The fourth part talks about the necessities and possibilities protecting the benefits of secured creditors by the reform procedure and points out that we should stimulate reorganization and realize the maximum of social interests without impairing others.The third chapter represents the advanced experience of foreign reform system guaranteeing the interests of secured creditors. The first part simply introduces the restrictive measures in the United States, England, Japan and some other countries. The second part describes how foreign reform system has protected their creditors’ benefits in detail from the following three aspects:the system to suspend security rights, the domination of debtors or trustees to the guaranteed property and the forced approval system of reform, expecting that it will provide reference to the reorganization system in China in order to make it perfect.The fourth chapter indicates the status quot, shortage in terms of protecting the interests of secured creditors and puts forward some improvement suggestion. Part one gives an introduction to the current situation and analyzes the deficiency from the following three aspects:the system to suspend security rights, the domination of debtors or trustees to the guaranteed property and the forced approval system of reform. Part two, combined with the advanced experience of some foreign countries, presents suggestion to perfect our reorganization system from the above-mentioned three ways.