On Protection Of Secured Creditor In Insolvency Reorganization

Since the Bankruptcy Law introduced the reorganization system in 2006,bankruptcy reorganization has become an important method to rescue distressed debtors.In order to preserve the property basis for the continued operation of the debtor,the legislation imposes a series of restrictions on the secured creditor,such as suspending the exercise of security rights,and at the same time proposes measures to protect the restricted secured creditor in Articles 75 and 87 to balance the interests of both parties.They are that the exercise of the security right is allowed to resume under certain specific conditions,and the specific conditions that should be met when the draft reorganization plan is mandated to be approved.However,through the analysis of legal rules,combined with the status quo of judicial practice,it can be seen that the current reorganization system still has the problems of improper restrictions on the rights of secured creditors and lack of effective remedies.There are three main reasons for the current situation of insufficient secured creditor protection in bankruptcy reorganization.The first is that the provisions on restricting and protecting secured creditors are not clear,and there is too much room for discretion.Under the concept of maximizing the overall interests of society in the Bankruptcy Law,it is easy to over-restrict their rights.The second is the lack of an appraisal system for secured property values and the lack of review standards for draft reorganization plans,resulting in low operability of relief for secured creditors.The third is that due to the particularity of bankruptcy and reorganization,the civil law and civil procedure law as general laws cannot completely make up for the deficiencies of the bankruptcy law.In order to solve the problem of insufficient protection of secured creditors in reorganization,this thesis,based on the theory of legal interpretation,proposes a limited interpretation of the legal provisions restricting secured creditors,refines the conditions for resuming the exercise of security rights,and specifies the conditions for compulsory approval of the reorganization plan as the ways to protect their interests.