An Analysis On The Cross-border Bankruptcy Of Zhejiang Topint Photovoltaic Case

Zhejiang Topint Photovoltaics’ bankruptcy cross-border case is the first case in which a U.S.court officially recognized the extraterritorial effect of Chinese mainland’s bankruptcy proceedings,and provided a positive model for cross-border bankruptcy cooperation between China and the United States.At the same time,the case also established the following principle in the United States: if the foreign proceeding is a foreign main proceeding or a foreign non-main proceeding and there are no exceptions,the bankruptcy court must recognize the foreign proceeding.The first part of this article introduces the basic situation of the case and summarizes the focus of the case.There are three points of contention in this case.The first is whether Zhejiang Topint Photovoltaic’ cross-border bankruptcy case meets the standards and conditions for recognition of cross-border bankruptcy proceedings in the United States.After confirming China’s bankruptcy proceedings and obtaining automatic suspension of relief,a third-party stakeholder disputed Zhejiang Topint Photovoltaic’ ownership of the panel,which led to the following two disputes: First,whether the third-party Hessert Construction Co.,Ltd.is eligible to challenge the ownership of the solar panels in the case;second,whether the panels in the case belong to Zhejiang Topint Photovoltaic.The second part of this article analyzes the recognition conditions of extraterritorial bankruptcy proceedings in Chapter 15 of the US Bankruptcy Law.The recognition of foreign proceedings under Chapter 15 is an objective criterion,and here I fully support the bankruptcy court’s decision to recognize Chinese bankruptcy proceedings.The third part of this article analyzes the disputes involving third-party stakeholders after the US bankruptcy court has ruled to determine China’s bankruptcy proceedings.Zhejiang Topint Photovoltaic and the third party first disputed the interpretation of the term “interested party” under Chapter 15.The New Jersey Bankruptcy Court,with reference to other relevant cases,laws and regulations,adopted a method of extensive interpretation,arguing that Hessert Construction Co.,Ltd.could not be protected,and its interests were not already being adequately represented,that is consistent with the status of "interested parties" in Chapter 15.Therefore,Hessert properly has standing to be heard on the issue before the Court,lest its interests would otherwise lack representation.The author here considers the reasoning of the bankruptcy court is inappropriate.Regarding the dispute between Zhejiang TopintPhotovoltaic and the third party over the ownership of the assets involved in the case,the bankruptcy court ruled in accordance with the law of the court.This article classifies the disputes caused by the relief in this case,and summarizes the different types of relief and important regulations under Chapter 15.Finally,based on the United States Bankruptcy Court under Chapter 15 on cross-border bankruptcy cases and related Chinese laws and regulations,this article suggests the design of China’s cross-border bankruptcy system.It is of great significance to deepen the construction of the "One-belt and One-way" of policy and creates a good business environment.