How to accept debt purchase

The acquisition company must bear the responsibility. However, we can reduce the debt through negotiation. When a company is merged, all parties to the merger shall sign a merger agreement and prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the merger resolution and make an announcement in the newspaper within 30 days.

legal ground

Article 172nd of the Company Law of People's Republic of China (PRC)

Company merger can adopt absorption merger or new merger.

A company absorbs other companies for merger, and the absorbed company is dissolved. The merger of two or more companies to form a new company is a new merger, and the parties to the merger are dissolved.

Article 174

When a company is merged, the creditor's rights and debts of the merging parties shall be inherited by the surviving company or the newly established company after the merger.