Research On The Creditors' Priority Repayment In Bankruptcy Procedure

The issue of priority for creditors of new financing in bankruptcy proceedings is an important issue that needs to be resolved urgently in China's bankruptcy proceedings financing and settlement system.The priority of new financing creditors in bankruptcy proceedings is to provide a series of priority guarantee measures for new financing creditors in order to solve the urgent financing needs of distressed companies in bankruptcy proceedings,in order to attract more investors to pay attention to the bankruptcy market and save bankruptcy An enterprise is the key to whether an enterprise can introduce funds to help the bailout and cover the operating costs and operating expenses of the troubled enterprise to maintain the operation of the enterprise.The preferential compensation of new financing creditors in China's bankruptcy procedures is not equally applicable to all bankruptcy procedures,namely bankruptcy reconciliation,bankruptcy reorganization and bankruptcy liquidation,but only applies to non-liquidated bankruptcy and reorganization procedures.Distressed corporate financing models in practice can be broadly divided into three types: debt-based,equity-based,and hybrid.The new financing methods used in bankruptcy procedures have not been specifically limited in China's laws.Relevant norms for financing are mentioned in the Corporate Bankruptcy Law and relatedjudicial interpretations,which is the choice of financing models for bankruptcy procedures by most troubled companies.Most insolvency laws in various countries give new financing creditors a certain form of priority in bankruptcy proceedings to attract investment,maintain business,and improve the liquidation rate.However,the priorities given to new financing creditors are different,There are mainly two types of priority: hierarchical claim priority and mutual benefit claim priority.Giving priority to new financing in bankruptcy proceedings has a justified foundation based on the principles of fairness and efficiency,and is an inevitable product of the principle of balance of interests.It is also an inevitable requirement to optimize the business environment in the new era.Most of the laws and practices related to bankruptcy in various countries regulate the issues related to the priority of new creditors in the bankruptcy proceedings.The United States,as one of the countries with the most well-regulated issues concerning the priority repayment of new financing creditors in bankruptcy proceedings,also has a system of priority settlement of claims,non-appealing rules for rules of appeal,and a hybrid guarantee system to provide full coverage to new financing creditors in bankruptcy proceedings.For the protection of local rights and interests,a priority debt compensation system has been established that breaks through the existing real right security relationship.The United Kingdom has also established a relatively complete institutional system,which has given priority to the settlement of bankruptcy applications above management fees,but has not broken through existing security rights.Japan grants financing in bankruptcy proceedings a "mutual benefit claim",grants proper priority,but does not allow for "super priority".China's corporate bankruptcy related system is largely the result of overall transplantation and relevant laws,regulations,judicial interpretations,etc.have not been applied for a long time.Therefore,the theoretical reserves and practical experience on many issues of new financing creditors' priority compensation in bankruptcy procedures Relatively lacking.At this stage,it is practically necessary to improve China's relevant systems.It is necessary to further clarify priorities,increase bankruptcy financing channels,strengthen the protection of creditors of new bankruptcy financing,strengthen supervision and management of new bankruptcy financing,and focus on the priority of new financing Compensation and other aspects of the compensation system.