On The Introduction And Construction Of Our Country’s Pre-reorganization System

Pre-reorganization,as a new mechanism for rescuing troubled enterprises outside of reorganization and out-of-court reorganization,has been widely used in recent years.Pre-reorganization has the dual advantages of out-of-court reorganization and in-court reorganization,which not only breaks the strict constraints of judicial reorganization,but also facilitates independent negotiations between troubled enterprises and creditors,investors and other relevant parties,so as to get rid of their difficulties and rejuvenate them,and plays an important role in enriching the existing debt reorganization system and improving the market exit mechanism for troubled enterprises in China.However,pre-reorganization has been applied in China for a relatively short period of time,with insufficient experience in the system and the lack of special unified legal norms,and is currently being explored by courts in different regions on their own.This has to a certain extent misunderstood and limited the role of pre-reorganization procedures,and there is an urgent need for legislation to regulate and apply them in a uniform manner.This article considers that pre-reorganization is a system designed with private law autonomy and a moderate degree of judicial intervention,and is a rescue mechanism for troubled enterprises with an independent legal status.In principle,the issue of the application of compulsory measures by some creditors against the debtor can be resolved through mediation and communication between the court and intermediaries,preserving their corresponding rights and options.The current amendment to the Enterprise Bankruptcy Law can be used to formally introduce and establish a prereorganization system,unify the existing regulatory guidelines with judicial interpretations,clarify the roles of the participating parties as autonomous,court-led and intermediary-assisted,strengthen the disclosure of information in the prereorganization process,address the effectiveness of creditors’ voting in out-of-court reorganization,establish the principle of estoppel and simplify the filing and examination of claims to regulate the interface between pre-reorganization and reorganization.In order to build a complete and standardised pre-reorganization system,and to better realise its value in protecting the bankruptcy of debtors and the interests of creditors,it is expected that it will be able to maximise its value in bankruptcy practice.