How to deal with creditor's rights and debts when the company is transferred

Legal analysis: After the company is transferred, the original debts of the company shall be borne by the transferred company. However, the transfer requires the consent of the creditor. Without the consent of the creditor, the debtor shall provide a guarantee before the transfer, otherwise the transfer is invalid to the creditor. According to relevant laws and regulations, if a legal person is merged, its rights and obligations shall be enjoyed and assumed by the merged legal person. Where a legal person is divided, its rights and obligations shall be jointly claimed by the divided legal person, unless otherwise agreed by the creditor and the debtor.

Legal basis: Article 67 of the Civil Law of People's Republic of China (PRC), if a legal person is merged, its rights and obligations shall be enjoyed and assumed by the merged legal person. Where a legal person is divided, its rights and obligations shall be jointly claimed by the divided legal person, unless otherwise agreed by the creditor and the debtor.