Rights Conflict And Balance Between Crediters In The Bankruptcy Reorganization Proceduce

According to the conventional wisdom, there is no return on the investment when enterprises go bankrupt. While the emergence of bankruptcy reorganization shatters that understanding.The reorganization can not only increase the portion of liquidation for creditors, but also bring the reconstituted entity proceeds,which, to some extent, is beneficial to every relevant interest subjects. Yet high return comes along with high risk. Creditors have to face various risks in the reorganization process, including the failure to realize claim and the conflict of interest between multilateral subjects. Considering the almost inevitable conflicts among the diverse subjects as they share common interest, the function of laws is to balance the relation of benefits. This thesis consists of four main parts. The first part includes the description of the basic theories, the evolution of reorganization procedures, the definition and value tendency of reorganization. The second part analyzes the definition and cause of the conflict of interest and figures out that a lack of affordable social resources is the fundamental cause of the conflict of rights. The essential part 3 focuses on clarifying the conflict of interests of creditors, including the external benefit game between debtors, corporate shareholders and investors, and the internal interest disputes between various creditors. Part 4 presents how to balance the conflict of rights. Based on the construction of legal system, the cancellation and offset of right are proposed to evade asset transfer by debtors. From the view of the procedures, the interests of creditors are guaranteed in 3 aspects, i.e., the application of reorganization, creditors’ autonomous organization, the formulation and pass of the reorganization plan. Focused on the conflict and balance of interests, the author explores the difficulties faced by creditors and the corresponding solutions in the reorganization procedure combining theory with practice with the ultimate goal of achieving the success of reorganization.