Winding up a business in China
Three insolvency specialists share their insights on the best routes to take if a company has gone bankrupt in China.
Issue: September 2010
Keywords (click to search):
bankrupt
wind up
insolvency
Herbert Smith
Jun He
Even though my global business has been doing everything it can to recover from the financial crisis, it doesn’t seem like it will be enough. Unfortunately we’re not able to pay our debts as they fall due. We will declare bankruptcy and shut down the factories and sales outlets we have in China. I’m not familiar with the PRC insolvency process and want to know what the least painful way is to proceed.
How do I wind up my business in China?
The domestic perspective
The decision on which route to take when winding up a business involves fundamental decisions of how involved the company management wants to be involved in the process and whether a company wants to retain goodwill, possibility out of a consideration of re-entering the China market someday.
If the group company values goodwill in China and overseas above the cost of winding down...
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