A "Beneficial Exclusion" Provision For The Cancellation Of Individual Settlements During A Bankruptcy Crisis

The first sentence of article 32 of the bankruptcy code gives the receiver "strong"revocation rights over individual liquidations during a crisis.In order to balance the interests of the liquidated creditors and mitigate the damage to the transaction security caused by the exercise of the revocation right by the bankruptcy administrator,the proviso of the foregoing revocation right is provided in the second sentence of article 32 of the enterprise bankruptcy law.From the perspective of interpretation,it is advisable to interpret the "benefit" in the proviso as "lossless",and include the two types of balance and negative increase.On the one hand,the equalization of property should at least include simultaneous performance,acquisition of "secondary new value" transactions and customary transactions.In terms of simultaneous performance,its establishment must meet two requirements:first,there is equivalence between payment and treatment;Second,transactions occur simultaneously.In terms of the transaction of "post-new value",its establishment should be clear in three aspects:first,the new value has no burden and its offset with previous liquidation follows the "net result rule";Secondly,the new value is provided before the bankruptcy application is accepted;Third,the new value provider is not limited to the indemnified person.As far as the customary transaction is concerned,its establishment must meet three requirements:first,the transaction belongs to the regular business;Second,the transaction follows conventional commercial terms;Third,the transaction is to maintain the basic production needs.On the other hand,the negative increase of property is mainly manifested in debt restructuring,and "creditor concession" is the core element of its establishment.