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A Legal Analysis and Practical Application of the PRC Enterprise Bankruptcy Law (BLI Jan 10) |
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Legal Practice Division (LPD) |
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| Abstract As the global recession strikes China, China?s Enterprise Bankruptcy Law (EBL) is being tested by a wave of insolvencies. This article provides an in-depth examination of the EBL more than two years after its promulgation. The article initially discusses two fundamental, well-founded principles of bankruptcy law that have been recognised and adopted by the EBL. The third part of the article then describes and analyses the fundamental challenges for the EBL and the PRC bankruptcy professionals, for example: the ambiguities of the EBL itself; lack of transparency of the PRC bankruptcy regime; and the absence of the debtor-in-possession (DIP) financing mechanism. The fourth part of the article goes on to examine, in detail, the roles and motivations of key participants in PRC bankruptcy cases, including the People?s Court, the bankruptcy judge, the administrator and the DIP. The fifth section offers three China-related bankruptcy case studies before the concluding sixth part. |
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