On The Construction Of Pre-packaged Plans Of Reorganization System In China

The current reorganization process in China always takes a long time with high cost,from which the debtor enterprise suffers a lot and by which the enterprise is either discouraged or not burdened,making the goal and value of the reorganization system difficult to achieve;while the out-of-court reorganization is flexible and time-consuming and bring little negative impact to the enterprise,but is difficult to overcome the inherent problem of restraint in private negotiations,so limited help is offered for distressed enterprises.As a new system in the judicial practice of the United States,the pre-packaged plans of reorganization procedure combines the advantages of out-of-court restructuring and intra-trial reorganization,which provides a new method to distressed enterprises.It can effectively solve the restraint strategy of a few creditors,especially individual creditors in negotiations,by means of judicial intervention.It can also extend the advantages of private negotiation,which is time-consuming,low-cost,has little negative impacts on business while empower great right of control to enterprises.Although pre-packaged plans of reorganization is not provided by the Bankruptcy Law of China and related judicial interpretations,a large number of practices in pre-packaged plans of reorganization have been explored.This paper analyzes the difficulties encountered in judicial practice on pre-packaged plans of reorganization.Comparing the predicament of current reorganization system with the advantages of the pre-packaged plans of reorganization system it is considered that it is not only necessary and feasible to establish a pre-packaged plans of reorganization system in China.This paper further draws on the pre-packaged plans of reorganization mode outside the domain,as well as the specific national conditions of China,and proposes that the construction of pre-packaged plans of reorganization system in China should learn from the partial pre-packaged plans of reorganization system under the mode in the US,improve the financial debt committee system in the stage of out-of-court restructuring,and adhere to the management mode of debtor self-managementn,and protect the suppliers’ claims.This paper is divided into four parts in addition to the introduction and conclusions:In the first part,the author starts with the Shenzhen Intermediate People’s Court’s pre-packaged plans of reorganization judicial practice—reorganization case of Shenzhen Fuchang,and introduces the specific practices and reasons as well as the problems in the adoption of the pre-packaged plans of reorganization mode in this case.On this basis,this paper introduces the discussion of construction of the pre-packaged plans of reorganization system in China.In the second part,the author briefly introduces the related overview and the concept of the pre-packaged plans of reorganization system,and analyzes the generate background,evolution and the differences among the pre-packaged plans of reorganization system and the traditional reorganization system as well as the out-of-court restructuring.In the third part,the author introduces the pre-reformation system under different modes of the United States and Japan,compare them and provides reference for the specific rules for constructing the pre-packaged plans of reorganization system in China.At the same time,the author introduces the specific models of pre-packaged plans of reorganization judicial practice in China,including Zhejiang,Shenzhen,and Sichuan,summarizing the existing experience of pre-packaged plans of reorganization system exploration in China.In the fourth part,the author demonstrates the necessity of establishing pre-packaged plans of reorganization system from the abuse of the reorganization procedure and the dilemma encountered in the traditional reorganization and the feasibility of establishing pre-packaged plans of reorganization system from the experience gained from the judicial practice exploration and the exploration of the financial debt committee system as well as the construction of the judge team.After drawing on the pre-packaged plans of reorganization system outside of domain and combining the judicial exploration in pre-packaged plans of reorganization in China,the author puts forward suggestions on the construction of pre-packaged plans of reorganization system in China from seven aspects: legislative purpose,mode selection,path selection,specific procedures,the protection of supplier creditor,the selection of management model,and the improvement of the financial debt committee system.