1, which is helpful to find out all the foreign debts of the acquired enterprises and reduce the risk of contingent debts;
2. The execution of the suspension guarantees that all the property of the creditor will be disposed of in the bankruptcy proceedings;
3. Cancel all seizure, including civil, administrative and criminal seizure;
4. The security interest is suspended in the reorganization procedure;
5. Full disclosure of financial status, property status, creditor's rights and debts, etc. ;
6. Majority decision to avoid out-of-court reorganization due to the disagreement of creditors;
7. Stop the interest calculation and reduce the acquisition cost;
8. With the assistance of the administrator, there are even more court documents to bless the legality of the acquisition.
Legal basis: Bankruptcy Law of People's Republic of China (PRC).
Article 109 A creditor who enjoys a security right over a bankrupt's specific property shall have the priority to be compensated for that specific property.
Article 110 Where a creditor who enjoys the rights stipulated in Article 109 of this Law exercises the right of priority in payment, and it has not been fully paid off, its outstanding creditor's rights shall be regarded as ordinary creditor's rights; The creditor's rights shall be regarded as ordinary creditor's rights.
Article 111 The administrator shall formulate a plan for changing the price of bankrupt property in time and submit it to the creditors' meeting for discussion. The administrator shall sell the bankrupt property in a timely manner according to the scheme of changing the price of the bankrupt property adopted by the creditors' meeting or ruled by the people's court in accordance with the first paragraph of Article 65 of this Law.