Legal analysis: bankruptcy procedures are the same for companies no matter how big or small they are. Therefore, a company can apply for bankruptcy if it meets the following conditions stipulated in the Bankruptcy Law of People's Republic of China (PRC): if an enterprise as a legal person is unable to pay off its debts due, its assets are insufficient to pay off all its debts or it obviously lacks solvency, it shall clear its debts in accordance with the provisions of this Law.
Legal basis: Article 107 of the Enterprise Bankruptcy Law of the People's Republic of China. If the people's court declares the debtor bankrupt according to the provisions of this law, it shall serve it on the debtor and the administrator within five days from the date of making the ruling, notify the known creditors within ten days from the date of making the ruling, and make a public announcement.