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A Legal Analysis and Practical Application of the PRC Enterprise Bankruptcy Law (BLI Jan 10)


Title   A Legal Analysis and Practical Application of the PRC Enterprise Bankruptcy Law (BLI Jan 10)
Abbreviation   BLI - Business Law International
Category   Article
Code   PUBJN2521
Author / Editor / Contributor   John J Rapisardi, Binghao Zhao
Volume   11
Issue   1
ISSN  
Format         Document         
Published   01 January 2010 
 
This product is relevant to the following committee(s)
Legal Practice Division (LPD)



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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