Beijing Beizhi Bankruptcy Liquidation Service Co., Ltd. (hereinafter referred to as "Beizhi Liquidation") is a wholly-owned subsidiary initiated and established by Beizhi Enterprise Credit Reporting (Shanghai) Co., Ltd., an enterprise credit reporting agency filed with the People's Bank of China.
As a comprehensive service provider for enterprise mergers and acquisitions and restructuring, We will focus on the merger and reorganization of corporate debt in local government industrial parks, debt mergers and acquisitions and restructuring of local government investment and financing platforms, and debt mergers and acquisitions and restructuring services of other enterprises.
In the previous part, we shared an overview of the bankruptcy liquidation industry. Starting from this article, the series of articles on "Research on the Bankruptcy Service Industry" will focus on mainland bankruptcy services.
1. Types of statutory bankruptcy services
The Enterprise Bankruptcy Law of the People's Republic of China specifies that three types of bankruptcy include: bankruptcy reorganization, bankruptcy settlement, and bankruptcy liquidation.
Bankruptcy reorganization: Bankruptcy reorganization is a new system introduced in the Enterprise Bankruptcy Law, which refers to a legal system that specifically targets enterprises that may or have bankruptcy reasons but have the hope of maintaining value and regeneration, through the application of all interested parties, under the auspices of the court and the participation of interested parties, to carry out business restructuring and debt adjustment to help debtors get rid of financial difficulties and restore their business capacity.
Bankruptcy settlement: Bankruptcy settlement refers to the legal system in which the debtor reaches an agreement with the creditors' meeting on the repayment of the debt when the cause of bankruptcy arises, and after the court's trial and approval, the bankruptcy procedure is suspended to avoid bankruptcy liquidation. The purpose of the conciliation system is primarily to avoid bankruptcy and to give debtors the opportunity to restructure their careers.
Bankruptcy liquidation: Bankruptcy liquidation means that when the debtor loses its solvency, the court enforces all its property and fairly pays off all creditors.
2. Bankruptcy business processes
The types of bankruptcy business are as follows:
3. Duties and remuneration of the bankruptcy administrator
Duties of the insolvency representative
Administrators are to be designated by the people's courts.
Where the creditors' meeting finds that the administrator is unable to perform his duties in accordance with law and impartially, or that there are other circumstances in which he is incompetent for his duties, he may apply to the people's court for replacement.
The methods for designating administrators and determining the remuneration of managers shall be prescribed by the Supreme People's Court.
Article 25 of the Enterprise Bankruptcy Law of the People's Republic of China, the administrator performs the following duties:
(1) Taking over the debtor's property, seals, account books, documents and other materials;
(2) To investigate the debtor's property situation and to produce a report on the state of the property;
(c) to decide on the internal management affairs of the debtor;
(d) decide on the daily expenses and other necessary expenses of the debtor;
(5) decides to continue or stop the debtor's business before the first meeting of creditors is convened;
(f) to administer and dispose of the debtor's property;
(7) Representing the debtor in litigation, arbitration or other legal proceedings;
(8) proposing to convene a meeting of creditors;
(9) Other duties that the people's court finds the administrator shall perform.
Where this Law provides otherwise on the duties of the administrator, those provisions shall apply.
Remuneration of the insolvency representative
Article 28 of the Enterprise Bankruptcy Law of the People's Republic of China The administrator may employ necessary staff with the permission of the people's court.
The remuneration of the administrator shall be determined by the people's court. If the creditors' meeting has objections to the remuneration of the administrator, it has the right to submit it to the people's court.
From the perspective of international experience, the current bankruptcy business as a whole is in the era of low profits.
Provisions of the Supreme People's Court on Determining the Remuneration of Administrators in the Trial of Bankruptcy Cases
Article 2 The people's court shall determine the remuneration of the administrator in sections within the following proportional limits on the basis of the total value of the property finally repaid by the debtor:
(1) Where it does not exceed one million yuan (including this amount, the same below), it shall be determined at less than 12%;
(2) The portion exceeding $1 million to $5 million shall be determined at least 10%;
(3) the portion exceeding 5 million yuan to 10 million yuan shall be determined by less than 8%;
(4) The part exceeding 10 million to 50 million yuan shall be determined by less than 6%;
(5) The portion exceeding RMB50 million to RMB100 million shall be determined by less than 3%;
(6) The part exceeding 100 million yuan to 500 million yuan shall be determined by less than 1%;
(7) The part exceeding 500 million yuan shall be determined by less than 0.5%.
The value of the collateral to which the security holder receives priority compensation is not included in the total value of the property provided for in the preceding paragraph.
Where the High People's Court finds it necessary, it may, with reference to the above proportion, formulate a limit on the proportion of remuneration for managers that conforms to the actual local situation within the floating range of 30%, and announce it through influential local media, and at the same time report to the Supreme People's Court for the record.
The more assets that an insolvent enterprise can pay, the more the insolvency representative will be paid.