Change is in order

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clpstaff &clp articles

In last month's issue of CLP, several specialists touched on China's Enterprise Bankruptcy Law with practical insights into winding up a business. Here, the reorganisation procedure and options available to struggling companies are analysed in greater depth

The combined effect of a recession and the credit crunch has latterly resulted in financial turmoil and an economic slowdown in the global markets. Due to this, a myriad of financially distressed companies have elected to reorganise their business affairs with a view to improving their operational efficiency and profitability, raising funds, and avoiding an imminent or prospective insolvent liquidation. Using their countries' reorganisation mechanisms, many businesses have successfully salvaged themselves from potential insolvency and emerged from their crises with clean slates. From these numerous examples, it is clear that reorganisation law has proven to be an ideal area for observing the legal process of corporate restructurings in a legal system within which it operates. This article aims to offer insights into the reorganisation law of China.

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