Legal Regulation On The Establishment And Enforcement Of The Business Plan Of Bankruptcy Reorganization

The business plan in bankruptcy reorganization is a series of measures that regulate the company’s business recombination, whose goal is to to help struggling companies to restore sustainable operating capacity and profitability. However, company’s restructuring practice often only aim at the completion of the debt clearing process, the rescombination of the business is excluded from the restructuring process, which is particularly prominent in a lot of bankruptcy reorganization practices of the listed corporations. The article use the comparative analysis, empirical analysis, economic analysis to research the reorganization or management plan of listed corporations bankruptcy, in oder to reshape the status of bankruptcy business plan, promote effective implementation, and help bankruptcy public company to restore rebirth.The business plan of public company bankruptcy is different from the usual business plan, whose concept and characteristics have the properties of bankruptcy law, which is to promote the rebirth, substantive fairness and procedural safeguard. It is the core of the reorganization plan and the benchmark of determining the process of the restruction. Its feasibility standard can be measured by three aspects including certainty, operability and higher efficiency of the implementation. The legislation and practice the debtor’s business plan of public company bankruptcy reorganization have some major issues, for example, the regulation are not enough detailed and poor implementation. The reasons are mainly exist in the following aspects of factors, strong political color of the bankruptcy reorganization system, the division of asset restructuring and debt reorganization procedure, the target confusion of business plan and the infinite setting of implementation period, and the deficiency of legal status of recombinant party and other new investors.The bankruptcy law should reconstruct the formulating content wnich provide a template for the reorganization practice. The main content of this template commonly should include the analysis of the reasons plight, asset restructring measures, management measures. Restructuring corporations can change according to their own condition. The bankruptcy law should reconstruct formulating program, which includ the submission of the scheme, the meeting of creditors, the voting, the court’s approval. The bankruptcy law should reconstruct execution period. In terms of enforcement period, it is recommended to apply for an extension of not more than three months, but the overall length of the maximum period is three years.In order to perfect the business plan and improve the efficiency of the implementation, the focus should be based on the coordination of public power and the protection of private rights. In the coordination of public power, court and the local government should reexamine their roles, which means that the court is a neutral judge and the local government is just economic management. Court and local governments can not conclude with each other to distort the ideas of bankruptcy reorganization system, approve the reorganization plan regardless of if operating scheme has higher possibility of implementation. The power of the court and the SRC should be convergence effectivety, that is the court should be the final decision of the restructuring plan and Securities Law applies filing system to backdoor listing. In the protection of private rights, legislation should strengthen the protection of the rights of new investors and small shareholders. The bankruptcy law or judicial interpretation should explicitly restrict deadline of implementation of the business plan and its execution target should be completed witnin the limited time of restructuring plan.The implementing period of restructuring plan should be decided by the business situation of the debtor, can apply for an extension of time, no more than three months, the long implementation period being two years. Finally, new investors should be endowed with a series of corresponding rights in reforming the program by the bankruptcy law in judicial explanation, such as restructuring plan formulation right or formulate participation and the right to know, the creditors’ meeting attending right, reorganization plan execution right, the reorganization plan to modify the application right, the protection right of signing out of the reorganization procedure,to attract investors to advance into the reorganization procedure, providing protection for the smooth formulation and implementation of management plan. By the protection of knowing right and lawsuit right of the small and medium shareholders, we can improve the efficiency of the formulation and implementation of the business plan.