What is the matter of bankruptcy reorganization, in layman s terms

Bankruptcy reorganization is to regenerate listed companies, fully mobilize the enthusiasm of all stakeholders (debtors, creditors, investors, reorganization investors and competent authorities, etc.), jointly rescue listed companies, take a step back, fundamentally restore the production and operation capacity of listed companies, maintain the normal business order of listed companies, and realize the regeneration value of enterprises.

1. The success rate of bankruptcy reorganization is only one-third.

Since 2007, there have been more than 70 cases involving listed companies. Among them, the main board of the Shanghai Stock Exchange accounts for about 32, the main board accounts for about 27, the small and medium-sized board accounts for about 26, and the rest is about 15 for the GEM. From the perspective of the implementation of the reorganization, only about 35 years after the completion of the implementation, about 12 were delisted during the implementation process, and about 6 were not accepted.

From another point of view, the success rate of bankruptcy reorganization is about 35. Therefore, there is only one-third of Phoenix Nirvana, and most of it is just a life-saving straw under chicken feathers. Even if some companies are successfully restructured, their stock prices are still depressed and they are on the verge of financial or trading delisting.

Bankruptcy Reorganization: Phoenix Nirvana or a Lifesaver?

According to judicial practice, the main procedures for bankruptcy reorganization of listed companies are divided into seven steps: application, acceptance, submission of reorganization plan, voting at the creditors' meeting, ruling to approve the reorganization plan, execution and ruling on the completion of the reorganization. The whole process takes about half a year, which is divided into two stages:

Pre-reorganization (3 months) and formal reorganization (3 months).

Bankruptcy Reorganization: Phoenix Nirvana or a Lifesaver?

2. Bankruptcy reorganization has become a new track in the M&A and restructuring market.

Broaden diversified exit channels. Improve systems for mergers and acquisitions, restructuring and bankruptcy reorganization, optimize processes, improve efficiency, and smooth diversified exit channels for listed companies such as voluntary delisting, mergers and acquisitions, and bankruptcy reorganization. Relevant regions and departments should implement comprehensive policies to support listed companies to clear risks through mergers and acquisitions, reorganization, bankruptcy reorganization, and other means.

The China Securities Regulatory Commission, the Supreme People's Court, the Ministry of Justice, the State-owned Assets Supervision and Administration Commission and other units and the provincial people are responsible).

It can be seen that the bankruptcy reorganization and asset restructuring of listed companies will become a hot spot in the market in the next few years, just like the registration-based IPO. It is impossible for a public listed company to simply go bankrupt and reorganize, once the debt is stripped off and becomes a net shell, if it is not supported by asset restructuring or even major asset restructuring (backdoor listing), then this is contrary to regulatory policies. For example, the original Sainty Marine SZ002608 (now known as Jiangsu Guoxin) simultaneously implemented bankruptcy reorganization and major asset restructuring, which proves that bankruptcy reorganization is to reduce the burden and asset restructuring is a new life.

It should be said: bankruptcy reorganization.

The so-called bankruptcy reorganization means that when the enterprise is insolvent, the management can apply to the court for bankruptcy reorganization. Once the application is approved, creditors cannot demand debts from the bankrupt business. The law allows the management of the same enterprise to propose a restructuring plan to creditors, deferring the repayment of debts, stopping the payment of dividends, suspending the payment of the principal of the debt, paying interest only, and reducing unsecured claims.

It is better for the creditor to collect the money at a discount and release the debtor than nothing.

Legal analysis: Reorganization refers to a system in which the debtor or creditor directly applies to the people's court for reorganization of the debtor in order to enable the enterprise facing bankruptcy to get rid of its predicament, regain its operating ability, and realize the solvency of the debt. Reorganization is an important system for preventing enterprise bankruptcy and an important part of the enterprise bankruptcy system.

Legal basis: Article 70 of the Enterprise Bankruptcy Law of the People's Republic of China The debtor or creditor may, in accordance with this regulation, apply directly to the people's court for reorganization of the debtor.

If a creditor applies for bankruptcy liquidation of the debtor, after the people's court accepts the bankruptcy application but before the debtor is declared bankrupt, the debtor or the investor whose capital contribution accounts for more than one-tenth of the debtor's registered capital may apply to the people's court for reorganization.

Company bankruptcy refers to the state in which the company is unable to pay off its debts due and is unable to continue its business, and the court declares that it has ceased business and liquidated its creditor's rights and debts. The Company Law stipulates that if a company is declared bankrupt in accordance with the law, the court shall, in accordance with the relevant laws, organize the shareholders, relevant authorities and relevant professionals to set up a liquidation group to carry out bankruptcy liquidation of the company.

1. If the enterprise goes bankrupt and bears personal liability, the legal representative will be subject to many restrictions when setting up another enterprise in the future;

2. If the legal person has no defects in its establishment, its liability for losses shall be borne by the legal person itself, and it is neither a shareholder nor a legal representative.

3. As long as the legal person can distinguish between the property of the legal person and the personal property, the legal representative does not need to bear civil liability. In the case of liabilities, the company shall bear all the assets of the company, and the shareholders do not need to bear it, except for the defects in capital contribution at the time of establishment.

1. What does it mean in law for a company to go bankrupt.

The bankruptcy of the company, that is, the bankruptcy of the company, the company is unable to pay off the debts due and is unable to continue to operate, and the court declares that it will cease business and liquidate the creditor's rights and debts.

China's Qinnapai Company Law stipulates that if a company is declared bankrupt in accordance with the law, the court shall organize shareholders, relevant authorities and relevant professionals to set up a liquidation team to liquidate the company in accordance with relevant laws.

2. What are the responsibilities of the legal representative of the **** application for bankruptcy?

In the case of a limited liability company, the shareholders are liable to the extent of their capital contributions. The responsibilities of the legal representative after filing for bankruptcy are as follows:

1. If the enterprise goes bankrupt and bears personal liability, the legal representative will be subject to many restrictions on re-operating the enterprise in the future; If an enterprise violates relevant laws, the person of the legal representative may be restricted; Where a legal person commits a crime, the legally-designated representative receives criminal sanctions;

2. If the legal person has no establishment defects, it shall bear the liability for losses and shall not be a shareholder or a legal representative.

Article 125 of the Enterprise Bankruptcy Law stipulates that a director, supervisor or senior manager of an enterprise who violates the duty of loyalty or diligence and causes the bankruptcy of the enterprise shall bear civil liability in accordance with the law. Persons under the circumstances provided for in the preceding paragraph shall not serve as directors, supervisors, or senior managers of any enterprise for three years from the date of the conclusion of bankruptcy proceedings. Member.

Bankruptcy reorganization means giving the enterprise a chance to save itself. Debt restructuring includes the conversion of debts into capital, the use of assets to settle debts, etc. According to the relevant laws and regulations, creditors, debtors and shareholders with legal qualifications may apply to the people's court for reorganization when the court declares bankruptcy rights.

The debtor shall submit a reorganization plan within the statutory time limit.

Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China If an enterprise legal person is unable to pay off its debts when due, and its assets are insufficient to pay off all debts or it obviously lacks solvency, it shall liquidate its debts in accordance with the provisions of this Law. Where an enterprise legal person has the circumstances provided for in the preceding paragraph, or there is a clear possibility of losing solvency, it may carry out reorganization in accordance with the provisions of this Law. Article 70 of the Enterprise Bankruptcy Law of the People's Republic of China provides that the debtor or creditor may directly apply to the people's court for reorganization of the debtor in accordance with the provisions of this Law.

Where a creditor applies for bankruptcy liquidation of the debtor, the debtor or the contributor whose capital contribution accounts for more than one-tenth of the debtor's registered capital may apply to the people's court for reorganization after the people's court accepts the bankruptcy application but before the debtor is declared bankrupt.