In 2006, China enacted its first rescue-oriented Enterprise Bankruptcy Law with the aim of establishing its corporate rescue culture. But the corporate reorganization procedure that is at the heart of the new bankruptcy law has not been used frequently. It is appropriate to ask why the use of China's new corporate rescue law has been so low. Meanwhile, in the existing corporate reorganizations under the 2006 Law, most debtors were excluded from the reorganization process, so that the Chinese new debtor-in-possession model, which seems to be a desirable control format, was largely shelved. Why so? This article explores these two issues through the use of empirical data collected from Zhejiang, a province with a significantly larger number of reorganizations than most other Chinese provinces.
Asian Journal of Comparative Law
Cambridge University Press (CUP): HSS Journals - No Cambridge Open
ZHANG, Zinian and TOMASIC, Roman.
Corporate reorganization reform in China: Findings from an empirical study in Zhejiang. (2016). Asian Journal of Comparative Law. 11, (1), 55-85. Research Collection School Of Law.
Available at: http://ink.library.smu.edu.sg/sol_research/1918
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