Legal analysis: Bankruptcy and reorganization is individual capital, and the legal term is bankruptcy and reorganization. As bankruptcy liquidation, it belongs to bankruptcy procedure. The difference is that the purpose of establishment is different. The former lies in saving enterprises, while the latter lies in destroying enterprises, with different value functions. The former actively prevents the debtor from going bankrupt, reflecting the value-added function of the bankrupt enterprise's property, while the latter reflects the redistribution function of the bankrupt property and distributes the debtor's property passively and fairly, with different specific measures. The former takes some protective measures to integrate the property, debt and business affairs of the enterprise, including additional investment, agreed extension and reduction of debt performance, enterprise merger and division, etc. The latter wants to distribute bankruptcy property at different prices, mainly including auction, forced sale and discount sale, and the actual benefits obtained by creditors are different. The former tries to bring the debtor back to life, preserve and improve the property and business value of the enterprise, and the creditor can naturally get more benefits, while the latter can only be paid off within the limits of the debtor's existing property, and the change of property price may cause huge losses to the enterprise, and the creditor can finally get paid off from the bankrupt property is extremely limited.
Legal basis: People's Republic of China (PRC) Company Law.
Article 70 The debtor or creditor may, in accordance with the provisions of this Law, directly apply to the people's court for reorganization of the debtor. Where the creditor applies for bankruptcy liquidation of the debtor, after the people's court accepts the bankruptcy application and before declaring the debtor bankrupt, the debtor or investors whose capital contribution accounts for more than one tenth of the registered capital of the debtor may apply to the people's court for reorganization.
Article 71 If, after examination, the people's court considers that the application for reorganization conforms to the provisions of this Law, it shall order the debtor to reorganize and make a public announcement.