Legal analysis: The local court will notify the relevant personnel and issue a bankruptcy announcement within ten days after receiving the bankruptcy case of the company. The bankruptcy announcement will be stamped with the official seal of the accepting court to show its legal effect. After the establishment of the liquidation group, the enterprise enters bankruptcy proceedings, and the company shall organize shareholders, relevant institutions and relevant professionals to set up a liquidation group according to law, take over the bankrupt enterprise in an all-round way, convene a creditors' meeting, determine the distribution of bankrupt property mainly through consultation, and reach a settlement agreement. With regard to the disposal and distribution of bankruptcy property, the liquidator shall submit the plan for the disposal and distribution of bankruptcy property proposed to creditors to the accepting court for ruling, and implement it after the ruling is passed.
Legal basis: Article 7 of the Enterprise Bankruptcy Law of the People's Republic of China. The debtor may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation under the circumstances specified in Article 2 of this Law. If the debtor is unable to pay off the debts due, the creditor may apply to the people's court for reorganization or bankruptcy liquidation of the debtor. If an enterprise as a legal person has been dissolved but has not been liquidated or its assets are insufficient to pay off its debts, the person liable for liquidation according to law shall apply to the people's court for bankruptcy liquidation.