How strategic investors can become involved in bankruptcy reorganisation

By Li Jian, Concord & Partners in Beijing

With respect to enterprises that have slipped into a debt crisis, some strategic investors have injected capital and effected acquisitions at their bankruptcy reorganisation stage which, while allowing the enterprises to recover their business capacity, also reduces the acquisition costs.

栗健 Li Jian 共和律师事务所 合伙人 Partner Concord & Partners
Li Jian
Concord & Partners

In terms of legal nature, bankruptcy reorganisation is a system established by the Enterprise Bankruptcy Law. It is a special legal process where a debtor that is in danger of going or has already gone bankrupt, but has prospects of resurrection, can – through consultations among the involved parties, and by virtue of a legally mandated adjustment of their interests and a reorganisation of the debtor’s production and operations, and straightening out of its claim and debt relationships – extricate itself from its financial difficulties and recover its business capacity.

A bankruptcy reorganisation procedure is completely different from a commonplace debt restructuring or corporate restructuring. The outcome of a bankruptcy reorganisation is not just a simple “new lease of life”, because if the reorganisation is unsuccessful, the debtor will undergo a bankruptcy liquidation procedure.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.




Suite 1930, Beijing Sunflower Tower, 37 Maizidian Street, Chaoyang District, Beijing

邮编 Postal code: 100026

电话 Tel: +86 10 85276468

传真 Fax: +86 10 85275038

电子信箱 E-mail: