Legal analysis: the debts before the company's business is transferred to another company shall be borne by the company that receives the business. According to the relevant laws and regulations, when a company is merged, the creditor's rights and debts of the merging parties are inherited by the surviving company or the newly established company after the 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.
Legal basis: People's Republic of China (PRC) Company Law.
Article 172 The merger of companies may 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.
Article 174 When a company is merged, the creditor's rights and debts of the merging parties shall be inherited by the surviving company or the newly established company after the merger.