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First, voluntary arrangement procedures (Company Voluntary Arrangements)
The so-called voluntary arrangements, is an informal procedure allows companiesto agree to partial performance of the debt restructuring agreement or an arrangement the company Affairs plans, provisions equivalent to the 11th chapter of bankruptcy reorganization in the United States. Its core purpose is to find effective ways of resolving the financial difficulties of the company, so as to avoid liquidation,and get the opportunity to restructure. According to the regulation, debtor company eligible under the supervision of the insolvency practice, reached a settlement with creditors can be sought. If a company voluntary arrangement proposal received the necessary majority (75%) of creditors and members agree, will have a directimpact on minority constraints.
Company voluntary arrangements program in the, dang enterprise bankruptcy Shi, if has guarantees creditors (usually is Bank) forced implementation bankruptcy Enterprise provides of guarantees Shi, the enterprise into took over program, if has guarantees creditors not forced implementation bankruptcy Enterprise provides of guarantees or willing to continues to provides funds support, at enterprise of Board can proposed started voluntary arrangements program, once get necessary most (75%) creditors of agreed, the proposed will success started.
Comments on: the secured creditor does not enforce a bankrupt enterprise to provide guarantees or willingness to continue to provide funding to demonstrate its continued confidence in the operation of the bankrupt enterprises, corporate voluntary arrangement procedure of bankruptcy starts successfully, or Midway "died". For example, claims back the claims of secured creditors, and so on. However, similar to the 11th chapter of bankruptcy reorganization in the United States, only under the voluntary program, creditors could get more claims than the liquidation amount, in this case, Chinese enterprises need to focus on is the complete registrationof claims, to the Board of Directors of the proposed debt arrangements carefully,to ensure its own interests.
Second, application management program (Administration)
Management, provides that the Court is satisfied that the debtor company has been or is about to become insolvent, you can decide by qualified insolvency practitioners to manage the company. Founded in 1986, the insolvency law of the Act, management program is the essence of managers (qualified insolvency practitionerspeople) should be the interests of unsecured creditors and the interests of the company itself operating companies, at the same time take measures to enable companies to improve their business, and by agreement with the creditor debts, to bring the company back to capacity to pay and to survive. Seen from the function, management program allows a troubled but there is hope of recovery is different from the liquidation of the company's rescue, the program with the reorganization system are generally similar.
Comments on: bankruptcy management makes in the bankruptcy management people not care creditors of by claims sex, because management makes just a process, once bankruptcy management people completed mission, bankruptcy company will will into liquidation program or recovery normal, that bankruptcy management people not processing general creditors provides of claims registration, but this situation Xia China enterprise as creditors also should timely submitted claims registration file, to ensure general creditors get any important Conference of notification.
Third, took over the program (Administration Receivership)
Take over, refers to the appointment of a receiver to implement the guarantees by the debtor company. A receiver appointed by the Court to make, or authorized bythe creditor under the law establishing the security file. But in practice, the appointment of the receiver can reject the application of the management program to save the company, appeared only to creditors own interests without taking into account the applicable management procedures contribute to the company's continuedexistence and development, in view of this, the 2002 law that reformed the program, provided the receiver has no right to veto the company's management program.
Comment: in receivership, bankruptcy receiver only preferred creditor (usually a bankrupt company employees are paid) and the secured creditor (usually a Bank) interest and ordinary unsecured debtor, it is difficult to be guaranteed.
Four, liquidation (Liquidation)
1986 bankruptcy law provides for the compulsory liquidation and voluntary liquidation. Under the provisions of article 124th, companies, Trustees, creditors, the liquidator, provisional administrator, Registrar of the magistrates courts (Special Act also provides for the Bank of England, the Attorney General, the Financial Services Bureau) this 6 class body may apply to the Court for compulsory liquidation of a debtor company. In addition, the company may by special resolution of the shareholders ' voluntary liquidation. No matter what the settlement should have been appointed liquidator, liquidator the powers and duties, in part provided for in 1986 in the bankruptcy and insolvency rules, in part comes from the case. Liquidators must be qualified insolvency practitioners people and in the name of the company rather than dealing with insolvency matters in their own name. This procedure is similarto the 7th chapter of the United States bankruptcy and liquidation procedures.
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Copyright 2012-2018. ALL RIGHTS RESERVED (International Trade Law)
Telephone：0086-13315171023 QQ:1215545143
Email：tradelawchina@hotmail.com Technical support：ZW0311