Asia-Pacific Restructuring Review Publishes Akin Gump China Article

Akin Gump financial restructuring partners Naomi Moore and Mark Fucci and cross-border transactions associate Jingli Jiang have written the “China” chapter of The Asia-Pacific Restructuring Review 2018, published by Global Restructuring Review.

The chapter discusses China’s first consolidated national bankruptcy regime, the Enterprise Bankruptcy Law (EBL), which came into effect in 2007. Prior to its implementation, “corporate insolvency laws in China,” the authors write, “consisted of a patchwork of inconsistent laws and local rules and regulations.” The EBL has since given China “a modern bankruptcy law regime that applies to both state-owned enterprises and non-state-owned enterprises.” It also allows for three different types of bankruptcy proceedings: reorganization, reconciliation and liquidation.

The article proceeds to outline other cross-border bankruptcy laws. It also details China’s efforts to establish liquidation and bankruptcy trial courts and the launch of a new website “that contains certain factual information relating to enterprise bankruptcy proceedings and debtors, and to streamline certain procedural matters in those proceedings.”

Finally, Moore, Fucci and Jiang note some of the implications for foreign creditors. Among them, they write, is that some PRC-incorporated companies “may incur cross-border debt in domestic and foreign currencies in accordance with a quota based on a formula relating to their respective capital or net assets multiplied by certain parameters that are issued by the regulator based on macroeconomic factors.”

To read this extract from GRR’s Asia-Pacific Restructuring Review 2018, first published in October 2017, please click here. The whole publication is available here.