Influence of bankruptcy of iron and steel enterprises on banks

1. Cash collection cannot be performed. According to article 16 of the Enterprise Bankruptcy Law, "after the people's court accepts the bankruptcy application, the debtor's debt repayment to individual creditors is invalid", and the final loss of some small and medium-sized bank loans may exceed their capital.

2. Enterprise properties cannot be enforced. According to Article 75 of the Enterprise Bankruptcy Law, "during the period of reorganization, the exercise of the security right over the debtor's specific property shall be suspended".

3. After the implementation of the reorganization plan, the outstanding creditor's rights will be eliminated. According to Article 94 of the Enterprise Bankruptcy Law, "the debtor is no longer liable for the debts reduced or exempted according to the reorganization plan from the end of the reorganization plan".