Research On The Legal Issues Of Reorganizing The Priority Of Investors

Starting from the problem of insufficient protection of the rights and interests of reorganization investors in the bankruptcy law,this thesis explores to protect their legitimate interests by giving reasonable priority rights and interests to reorganization investors,which is reflected in the priority of paying off their creditor’s rights or dividends.Reorganizing investors has played a vital role in helping troubled enterprises get rid of the debt crisis,alleviate the shortage of operating funds,ensure the sustainable operation of enterprises,and enhance the core competitiveness and innovation ability of enterprises.However,China’s bankruptcy law and relevant judicial interpretations have not made reasonable and perfect arrangements for the protection of the interests of reorganized investors,Only one legal provision is used in the judicial interpretation of the enterprise bankruptcy law(III),which stipulates that the loan during the reorganization period can be paid off preferentially with reference to the mutual benefit debt.There is no provision on the protection of the interests of reorganization investors in the enterprise bankruptcy law.There is a strong contrast and contradiction between the behavior of reforming investors to help the needy and the insufficient protection of the rights and interests of reforming investors in China’s bankruptcy law.Based on this,this thesis focuses on the priority measures to protect the rights and interests of reorganization investors,analyzes the current situation and problems of priority measures,and puts forward reasonable and perfect suggestions.The priority of restructured investors mainly includes super priority of guarantee,priority of mutual beneficial debt and preferred shares.The super priority of the reorganization investor’s guarantee refers to the priority of the repayment order of the creditor’s rights over the original secured creditor.The author believes that there is no need to set up a guarantee super system in China’s bankruptcy law,which is related to the lack of practical demand for creditor’s rights investment and seriously touching the interests of the original secured creditors,which may lead to the failure of the reorganization plan and easy abuse.However,we can make full use of the super priority system of price guarantee in article 416 of the civil code to meet the needs of reforming the security priority of investors.The priority of mutual benefit debt mainly has the problems that the time,scope and interest can not meet the practical needs and the priority order is unclear.The author suggests that the time of mutual benefit debt should be appropriately advanced to the time when the debtor applies for reorganization,so as to expand the scope of application of mutual benefit debt,that is,in addition to borrowing,creditor’s right investment in line with the common interests of all creditors and for the purpose of the debtor’s continuous operation can be protected by the priority of mutual benefit debt.Mutual benefit debt financing does not apply to the bankruptcy stop rule,and the interest should be guaranteed.The author believes that there is no need to learn whether the priority of mutual benefit debt is superior to bankruptcy expenses and other mutual benefit debts.The reason is that it will cause legal consequences that affect the whole body,and the legal cost is too large.For the issue of preferred stock financing,the author believes that the primary task is to reduce the threshold of preferred stock issuance and make the restructuring investors qualified to issue preferred shares.Through these three forms of priority,we can fully protect the interests of reorganization investors and give them incentives to lend a helping hand to the reorganization enterprises and help them succeed in reorganization.