The Legal Analysis And Consideration Of The TaiZi Dairy Bankruptcy Case

The Citi bank submitted an application of TaiZi dairy bankruptcy liquidation to the cayman big court In March,2009. The court ruled that TaiZi dairy went bankruptcy in April and appointed the BaoHua accounting firm in Hong Kong as the TaiZi dairy provisional liquidators in charge of the liquidation domestic and foreign assets. The matter immediately caused uproar in the domestic after the media exposure. Legal professionals think that the case will become the first Chinese enterprise multinational bankruptcy case if the Chinese court admitted the cayman big court ruling. some of the legal issues about the case were heated debated by legal professionals,the opinions differ from each other.This paper, starting to analyse from several hot issues of TaiZi dairy bankruptcy. Think that the cayman big court didn't jurisdict over the TaiZi dairy case, because the both sides have agreed jurisdiction, ruled out foreign law applicable. The Citi bank s application for the TaiZi dairy bankruptcy liquidation to the cayman big court, violated the agreement between the parties, and lead to the TaiZi dairy got into serious crisis, resulted in huge losses, shall assume tort liability. Chinese courts should not recognize and enforce the cayman big court ruling, because the cayman court have not jurisdiction, and the ruling violated the national interests of China and the interest of Chinese creditor, went against the protection to creditors and saving enterprise. The custody agreement about the Gaoke dairy and the TaiZi dairy were valid, but because of violating agreements and purpose contracts, the Gaoke dairy should return managerial authority to the TaiZi dairy. Its behavior of seizing were not legal right basis, and harmed the interests of debtor and creditor. The Gaoke dairy were not right to apply bankruptcy reorganization as Custody square. Its behavior of forcibly pushing forward bankruptcy restructuring did not only violate the interests of the debtor and creditors, but also were not law-based.In the case of some legal problems appear, this paper also puts forward some thoughts. The TaiZi dairy were bankrupted, so we have to think of the legal risks about offshore enterprise, how should we prevention. In a bankrupt case, how should we keep the balance of interest for the debtor,the creditors,the custodian and the government. Whether should the government interests be priority to the interests, Whether should the debtor and creditors appeal to equal protection, etc. ZhuZhou government's custody pattern claims to bring forth new ideas for saving enterprises, but the result is not only the enterprise life, but also actually accelerated and ultimately led to its bankruptcy. How should we define the border of the government management to enterprise, whether should we abide by market economic laws, it is worth to our reflection. In a multinational bankruptcy case, how should we protect foreign creditors' interests, how should we cooperate with foreign court. whether the principle of reservation of public order should be used cautiously? whether should we accord to international rules, the international practices act? how can we safeguard the interests of the state and the domestic creditors, but as well Chinese court ruling get the acknowledgement and enforcement of foreign court? this is a problem of deserving research.