The Construction Of Prepackaged Bankruptcy System In China

It is a change in the development trend of bankruptcy law in China in recent years that from "enterprise exit" to "enterprise rescue" mode of conversion,to ensure the debtor’s continued operation for the purpose of saving the enterprise in debt crisis to avoid bankruptcy,to protect the rights and interests of creditors,to maintain social stability,is the development trend of China’s bankruptcy law in recent years.At present,the world has formed two typical relief models,namely,bankruptcy reorganization and out-of-court reorganization,but due to the disadvantages of traditional reorganization,such as low efficiency and huge costs,it is difficult to truly play its value.At the same time,although out-of-court restructuring gives parties full autonomy to negotiate and settle their claims and debts,the adoption of the restructuring plan is predicated on unanimous decision,which makes it difficult to avoid the problem of clamping down.Thus,it is imperative to develop and improve the corporate rescue system.Pre-reorganization is an organic combination of traditional reorganization and reorganization,in which the parties are given ample room to negotiate a pre-reorganization plan during the out-of-court reorganization process,and the court reviews and approves it during the formal reorganization process to ensure that it is legally valid for all parties involved.Pre-reorganization is a system that combines the advantages of traditional reorganization and restructuring and overcomes their disadvantages,which is of great value for the rescue of troubled companies.At present,there is no unified definition of pre-restructuring in academic circles,and domestic legislation has not formally established it,which has led to the lack of a clear legal basis for judicial practice.However,some problems have been revealed,such as unclear roles of parties in pre-restructuring,unclear information disclosure requirements,and lack of effective connection between pre-restructuring and restructuring.In order to better utilize the functions of pre-restructuring,highlight its institutional value and promote its establishment and improvement in China,it is necessary to re-examine the institutional value of pre-restructuring and make suggestions on the application of pre-restructuring in China.First of all,we should draw on the experience of foreign countries and design a legislative framework for pre-reorganization from the perspective of domestic practice,and provide detailed provisions for it by way of judicial interpretation.Second,the functions and positions of all parties involved in pre-reorganization should be clarified,with the creditors and debtors of troubled enterprises as the leading parties in pre-reorganization,the government as the intermediary coordinator,and the court as the one responsible for reviewing and approving the reorganization plan and supervising the pre-reorganization process.Again,the debtor is the main applicant in the initiation process,and the court assesses whether the enterprise is eligible for reorganization and its salvage value through the pre-reorganization process.In the pre-reorganization plan,information disclosure should be enhanced and voting procedures should be reasonably designed to balance theinterests of all parties.Lastly,the court should establish a mechanism to connect out-of-court restructuring and formal reorganization,and clarify the effectiveness of the provisional administrator and the pre-reorganization plan in the formal reorganization stage.