A Research on Substantive Merger Bankruptcy Rules

Abstract

The emergence of related enterprises is the inevitable outcome of the rapid development of market economy. The independence of law and the closeness of economy make the bankruptcy of affiliated enterprises more complicated than that of ordinary enterprises. The establishment of the substantive merger bankruptcy rule is to deal with the special situation of the bankruptcy of the affiliated enterprises, through the substantive merger of the properties of the affiliated enterprises, the creditors will pay off the merged property in proportion, so as to protect the interests of the creditors. In view of the current legislation and judicial interpretation of China has not established the substantive consolidated bankruptcy rules, this paper analyzes the value of the substantive consolidated bankruptcy rules and the problems in judicial practice on the basis of clarifying the relevant concepts and puts forward some legislative suggestions for the application of the rules and the initiation of procedures.