Research On New Financing Claim Priority In Bankruptcy Reorganization Recurrence

The "Regulations on Several Issues concerning the Application of the" Bankruptcy Law of the People’s Republic of China "promulgated by the Supreme People’s Court in March 2019(3)" clearly states that in the course of bankruptcy and reorganization,the debtor can raise funds for the purpose of continuing operations and can also set up for this purpose Guarantee,and such claims will be settled in the same order as public welfare debts,that is,the priority of the claims.The promulgation of this regulation has aroused a lot of heated discussions and concerns in the society.Once this regulation was promulgated,it aroused heated discussions in academic theory.Proponents believe that this provision is in line with the legislative purpose of the bankruptcy law,that is,to help difficult companies out of business difficulties through the legislative level,protect the legitimate rights and interests of the vulnerable parties in bankruptcy,and complete the distribution of bankruptcy assets fairly,reasonably and efficiently,injecting vitality into the debtor.Enterprises,creditors,and even the market and society all have positive and positive effects.Opponents believe that the regulation is ambiguous,and its normative content conflicts with other sector laws in many places.In many cases,it has not yet been clearly specified.The necessity has been very prominent in practice,and this regulation has a serious lag,so there are many problems that need to be resolved.Bankruptcy reorganization recurrence is a relatively new behavior model that appears in judicial practice.Taking the case of Jiangxi Saiwei Solar LLC.as an example,in order to enable difficult companies to resume their ability to continue operations as soon as possible to prevent waste and loss of social resources,the court is reorganizing the financing party.After the divestment,the bankruptcy reorganization procedure was not ruled to be transformed into the bankruptcy liquidation procedure.Instead,it was waited for the new financing party to enter and perform another reorganization procedure completely,so it was called bankruptcy reorganization recurrence.Because new financing in the form of new debts by debtors will lead to conflicts in the settlement of debts,it is difficult to clearly explain the settlement of debts in the current bankruptcy legal system and to protect the interests of creditors and various entities;The special status of the new financing creditor for bankruptcy reorganization recurrence makes the bankruptcy law make appropriate changes to the function,value,and structure of the priority of creditor’s rights.Based on the difficulty and efficiency of financing during the reorganization recurrence,it is necessary to change from the function of protecting the weak position from priority tor the incentive of financing behavior,the concept of bankruptcy priority should be changed.At the same time,the system of bankruptcy priority needs to be optimized so that it can play the institutional value of each sector law under the new bankruptcy law concept so as to effectively reduce the conflict of ideas between different sector laws and the resulting loss of profits.The bankruptcy law embodies the characteristics of the integration of private law and public law,and in the course of bankruptcy reorganization recurrence,the rights of the parties to the expression of interest claims should be respected.Both creditors,debtors and shareholders should have sufficient platforms for expression of meaning.Promote communication and exchanges between various stakeholders to make them a community of interests and make the greatest efforts to maximize their own interests and the recovery of difficult enterprises.The insolvency law should allow and provide such a platform and respect the expressions of intention of all parties,and In this way,the interests of all parties are better protected.This article is divided into four parts in addition to the introduction.The first part elaborates the basic model of bankruptcy reorganization recurrence and the essence behind the priority of bankruptcy reorganization recurrence financing is the conflict of interest and value balance between the various entities,the value of bankruptcy reorganization recurrence from an economic perspective and the priority given to new financing creditors To demonstrate and analyze the legitimacy and rationality of the company.In the second part of this article,according to the existing bankruptcy legal system,the analysis of the settlement order of each subject in different situations in the case of debt financing,and proposes that the settlement order is fixed by the subject through free negotiation and the settlement order is fixed by agreement.The protection method is the most appropriate for the interests of all parties.The third part of this article elaborates on the rationality of the fixed settlement order in the form of contract in detail,and demonstrates from the perspective of contract value that the autonomy of will under the idea of bankruptcy has more socioeconomic value and has a positive effect on the efficient advancement of bankruptcy proceedings.The fourth part is several suggestions for the reform of bankruptcy reform and the reform of the bankruptcy reform system,including the definition of the legal concept and content boundary of bankruptcy reorganization recurrence,the priority given to creditors of bankruptcy reform,and A series of measures,such as granting “super priority” under certain conditions,allowing the bankrupt interest parties to express freely on the order of settlement,and optimizing the existing bankruptcy priority system,are designed to optimize the bankruptcy environment,reduce bankruptcy stigma,and balance the subject.Conflicts of interest and attract financing to better leverage the institutional value of bankruptcy law.