Comparative Research On Bankruptcy Reorganization Plan Of China And America

The problem of China's restructuring plan is that the formulating body of the plan is relatively simple.The time of the development is not so scientific and the content of the restructuring plan is not detailed enough.The administrative model is unclear as to whether choose the DIP model or the administrator model.This model is unable to reflect the legislators' real intent.The U.S.restructuring plan is formulated with debtor model as the principle,administrator model as the exception,creditors and other relevant parties can participate in the formulating process.In terms of the content of the restructuring plan,American law is very detailed and easy to operate.However,the U.S.restructuring plan formulating tends to spend too long time,which is not conducive to cost saving.China should clearly stipulate the model of the administration,the priority of the debtor's planning power,increase the participation of creditors,try to refine structuring plan content.In the adoption process of the reorganization plan,China's group voting lacks flexibility,the investors group's adoption standard is unreasonable,and the necessary information disclosure is insufficient before the voting.In the United States,the division of voting group is flexible,which is more conducive to fairness.The investor group adopts more reasonable standards,and the information disclosure before voting is very timely and detailed.China can increase the flexibility of grouping,improve the adoption criteria of group voting,and establish a perfect information disclosure mechanism.After the adoption of China's reorganization plan,the court's compulsory approval will easily lead to the imbalance of the interests of debtors and creditors and the court's abuse of the compulsory approval power.The US courts strictly implement the principle of absolute priority in the approval process and effectively control the imbalance of the interests of creditors and debtors.American courts are keen to judge the viability of mandatory approvals,so even those plans that have been past may be vetoed by the court.China should implement the principle of absolute priority more strictly to prevent the interests of debtors and creditors from being out of balance,establish the relief review system after the approval of the reorganization plan and curb the abuse of the court's power through compulsory approval.