Is it necessary to pay off debts when buying a indebted company?

Legal analysis: the acquisition of a indebted company needs to repay the debt of the acquired company. Specifically, 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. Therefore, the acquisition of a heavily indebted company is to pay off debts.

Legal basis: Article 172 of the Company Law of People's Republic of China (PRC), the merger of companies can take the form of 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.