Legal analysis: When companies merge, the creditor's rights and debts of the merging parties are inherited by the surviving company or the newly established company after the merger. The debts before the division of the company shall be jointly and severally liable by the company after the division. However, unless the company and creditors reach a written agreement on debt settlement before division. Where a limited liability company is changed into a joint stock limited company, or a joint stock limited company is changed into a limited liability company, the creditor's rights and debts before the company change shall be inherited by the changed company.
Legal basis: According to Article 9 of the Company Law of People's Republic of China (PRC), if a limited liability company is changed into a joint stock limited company, or a joint stock limited company is changed into a limited liability company, the creditor's rights and debts before the company change shall be inherited by the changed company.