The concept of enterprise bankruptcy debt restructuring

Legal analysis: Enterprise bankruptcy debt restructuring refers to the creditor's application 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 debtor's registered capital may apply to the people's court for reorganization, that is, reorganization and adjustment of the enterprise. That is, the debtor and the creditor reach an agreement under the auspices of the court to make a reorganization plan, stipulating that the debtor can pay off all or part of the debt in a certain way within a certain period of time, and the debtor can continue to operate the enterprise instead of liquidating the bankrupt debtor's property immediately.

Legal basis: Enterprise Bankruptcy Law of the People's Republic of China.

Article 2 If an enterprise as a legal person is unable to pay off its due debts, its assets are insufficient to pay off all its debts or it obviously lacks solvency, it shall clear up its debts in accordance with the provisions of this Law. An enterprise as a legal person may be reorganized in accordance with the provisions of this law if it has the circumstances specified in the preceding paragraph or obviously loses its solvency.

Article 7 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.