On The Bankruptcy And Reorganization Claims Secured Creditor Protection

With the rise of worldwide bankruptcy system, how to protect the interests of thesecured creditors became the focus in the reorganization system. It is likely todiscourage their confidence in bankruptcy reorganization, if secured creditor’slegitimate rights can’t be protected effectively. When it comes to protect the interests ofthe secured creditors, we have to say the limit on creditor’s rights and how to protecttheir interests. Since2007,"Bankruptcy Law" introduced a new system of bankruptcyreorganization. While regulations in the current bankruptcy law are complete, no law isperfect. In the new bankruptcy law, there are many deficiencies in protecting securedcreditors. Throughout the global bankruptcy law, the attitudes toward the securedcreditor in reorganization are different. Britain and Germany try to protect the bestinterest of them. And the United States and Japan combine the restriction and protectionon the secured creditors. This article talks from our current bankruptcy reorganizationsystem, carries on a discussion with the current situation and the deficiencies about theprotection of secured creditors in the bankruptcy reorganization and then puts forward aseries of suggestions trying to make a contribution to perfect our bankruptcyreorganization system. According to China’s specific national conditions, the authorsuggests that we should limit the reforming scope on limited liability companies, publiccompanies and other large enterprises. In order to protect the legitimate interests ofsecured creditors, it should regulate that if guaranteed property is not necessary inreorganization, and then should allow the secured creditor implement security right. Themeaningless evidence on reorganization for guaranteed property should be borne by thedebtor or the administrator. Meanwhile, we should improve the regulations in thereorganization draft which was crammed down by China court; realize the protection ofthe secure creditors’ interests.