1. Bankruptcy reorganization is a bankruptcy procedure;
2. Bankruptcy refers to a legal system in which the creditor or debtor requests the court to declare bankruptcy and repay the debt according to the bankruptcy procedure when the debtor is unable to repay the debt or insolvent;
3. Bankruptcy reorganization means that when an enterprise is insolvent, the management can apply to the court for bankruptcy reorganization. The law allows the management of the same enterprise to propose a reorganization plan to creditors, postpone repayment of debts and stop paying dividends;
4. The bankruptcy of the company may also be bankruptcy reorganization. If the reorganization is successful, the company may be completely transformed. If the reorganization is unsuccessful, bankruptcy liquidation may be carried out.
The legal procedures for the bankruptcy of the company are as follows:
1, application;
2. Acceptance: After the people's court decides or accepts the bankruptcy case of the company, it shall notify the debtor and known creditors within 10 and make an announcement;
Step 3 reconcile
Bankruptcy reconciliation refers to a system in which after the people's court accepts the application for reconciliation or bankruptcy, before declaring the debtor bankrupt, the debtor and the creditor reach a settlement agreement on the debtor's delay in paying off debts and reducing the amount of debts, and terminate the bankruptcy procedure after being approved by the people's court;
4. announcement;
5. Liquidation: According to the Company Law, if a company is declared bankrupt according to law because it can't pay off its due debts, the people's court will organize shareholders, relevant authorities and relevant professionals to set up a liquidation group to liquidate the company.
6. Bankruptcy ends.
To sum up, the difference between bankruptcy reorganization and bankruptcy is that after bankruptcy reorganization, the company can resume its business activities if the reorganization plan is implemented smoothly; After the company goes bankrupt, it can only go through bankruptcy liquidation and cancel the company registration according to law.
legal ground
Article 93 of the Enterprise Bankruptcy Law of the People's Republic of China
If the debtor is unable to execute or fails to execute the reorganization plan, the people's court shall, at the request of the administrator or interested party, make a ruling to terminate the execution of the reorganization plan and declare the debtor bankrupt.
If the people's court decides to terminate the execution of the reorganization plan, the commitment made by the creditors to adjust their claims in the reorganization plan is invalid. The creditor's repayment due to the implementation of the reorganization plan is still valid, and the unpaid part of the creditor's rights is regarded as bankruptcy claims.
Creditors specified in the preceding paragraph can only continue to accept distribution if other creditors at the same level have the same proportion of their debts.
Under the circumstances specified in the first paragraph of this article, the guarantee provided for the implementation of the reorganization plan shall remain valid.