Research On The Legal System Of Enterprise Bankruptcy Reconciliation In China

The bankruptcy settlement system has the institutional advantages of being concise,efficient and fully reflecting the autonomy of the parties,and has the dual functions of preventing bankruptcy and settling creditor’s rights and debts.The application of China’s bankruptcy settlement system in judicial practice is not ideal,facing the situation of low application rate and poor operability,coupled with the gradual abolition of bankruptcy settlement system by foreign laws,all of which make the bankruptcy settlement system face many challenges.On the basis of in-depth exploration of the theory of bankruptcy settlement system and systematic analysis of practical data,it is found that the low application rate and unsatisfactory practical effect of China’s bankruptcy settlement system are caused by many reasons.First,there are defects in the application rules of the bankruptcy settlement system.The reasons for filing for bankruptcy settlement are too strict and the applicant subject is unique and cannot meet the actual needs.Second,the content and standards of the court’s review of the bankruptcy settlement application are unclear.The content of the draft settlement agreement submitted by the debtor is not clearly defined,and the court has no explicit provisions on whether the application for settlement is a formal examination or a substantive examination.Third,there is a lack of appropriate restrictions on security interests in bankruptcy settlement proceedings.Once the secured creditor exercises its security interest in the debtor on the verge of bankruptcy,it will accelerate the progress of the debtor’s bankruptcy,contrary to the original intention of the settlement system.Fourth,there is a lack of flexible conversion mechanisms between reconciliation procedures and reorganization procedures.In practice,once the procedure is misused,it directly enters the liquidation procedure,and the provisions are too rigid,which is not conducive to giving play to the institutional value of the bankruptcy law to save the rebirth of the enterprise.Fifth,the lack of supervision mechanism for the implementation of the settlement agreement has seriously dampened the confidence of the settlement creditors.In view of the difficulties faced by China’s bankruptcy reconciliation system,this paper puts forward refined suggestions for improvement.First,we should optimize the application conditions for bankruptcy settlement,expand the reasons for applying for bankruptcy settlement,and increase the administrator as the applicant.The second is to improve the court’s review system of bankruptcy settlement applications.Make clear provisions on the contents of the draft agreement and the review criteria.Third,we should appropriately restrict the exercise of security interests.In order to better balance the interests of the secured creditor and the debtor,the principle of not restricting the exercise of the security right should be adopted,with the exception of the application of the administrator or the debtor to suspend the exercise of the security right.The fourth is to establish the conversion mechanism between bankruptcy reconciliation procedure and bankruptcy reorganization procedure.It mainly unblocks the conversion mechanism from bankruptcy settlement to bankruptcy reorganization,and systematically and in detail stipulates the starting elements,application subject,application period,review procedure,the effectiveness of the previous procedure and so on.Fifth,we should build a perfect supervision mechanism and give full play to the supervision role of the court,managers and creditors.