On The Legal System Of Prepackaged Reorganization In China

In the past two years,due to the pressure of the new crown epidemic,many companies have faced the dilemma of a sharp reduction in income and a sharp rise in cash flow pressure.The uncertainty of the market has further increased.Rejuvenated.However,my countrys traditional in-court bankruptcy reorganization and out-of-court bankruptcy reorganization have problems in practice,such as long reorganization periods and high economic costs.The pre-reorganization system originating from the United States provides a way to solve the above problems to a certain extent.A feasible path.my country has not yet established a special pre-reorganization legal system at the legislative level,but in judicial practice,procedural arrangements with the nature of pre-reorganization have been practiced in many places,and they have played a huge role in rescuing companies on the verge of bankruptcy.The pre-reorganization system takes into account the advantages of both out-of-court reorganization and in-court reorganization.Specifically,before the company enters the formal reorganization process,the debtor,creditors,investors,shareholders,and other interested parties jointly draft a reorganization plan,and then submit the resulting agreement or draft to the court.Once the court approves the reorganization plan,the plan has achieved execution power and the reorganization procedure has ended.A large amount of reorganization work has been moved to the formal reorganization process,so pre-reorganization can effectively save the time and economic costs of reorganization.Secondly,pre-reorganization is usually carried out with the participation of large creditors,which has great privacy,will not affect the corporate reputation,ensure the stability of the normal operation of the company,reduce the negative impact on the company,and increase the success rate of the reorganization..Finally,the pre-reorganization system can more accurately reflect corporate value.The traditional reorganization system has no retreat because the enterprise enters the reorganization process.It tends to depress the market price of company assets too much.As the pre-reorganization system still has the possibility of maneuvering,it can more truly reflect the value of the enterprise.The pre-reorganization system originated in the United States,in order to avoid the incompatibility of foreign systems with my country’s domestic judicial practice.Therefore,our country adopts the method of local practice first and then unified legislation.Many local governments and courts in my country have actively explored the pre-reorganization system and issued relevant policy documents.However,there are different models for exploring the pilot pre-reorganization system in various places.Some are court-led,some are government-led;some require the appointment of a temporary administrator and exercise part of the administrators powers in the reorganization process,and some only require Debtors can hire auxiliary agencies to carry out pre-reorganization work;some stipulate that the initiation of pre-reorganization will have the effect of suspension of execution and cancellation of preservation measures,and some emphasize the negotiation on the basis of the autonomy of the creditors will,and no similar reorganization procedures will occur.The legal effect of activation.This article compares the current local judicial practice in Wenzhou,Xiamen,Jiangsu,Chongqing and other regions,and draws out the differences and problems of the existing pre-reorganization system.Through comparison,we can find that my countrys local exploration of the pre-reorganization system has different starting conditions,the debtors lack of flexibility and autonomy,and the inadequate connection procedures between pre-reorganization and formal reorganization.All of these issues need to be unified.Formal legal documents to resolve.Therefore,I believe that after preliminary exploration of the pre-reorganization system in local areas,our country should summarize the problems.The highest peoples court can first issue corresponding judicial interpretations or guidance documents to solve the problem,such as the initiation of the unified pre-reorganization procedure,the clarification of the rights and obligations of the temporary administrator,the effectiveness of the debtors property preservation,and the regulation of government-court linkages The involvement of the mechanism and the requirements for improving the degree of information disclosure,etc.The basic legal framework of the pre-reorganization system was established in the early stage,and the pre-reorganization system was further improved through the legislation of the National People’s Congress.