ChinaÆs new bankruptcy law is an improvement in terms of general direction, but is unlikely to solve quickly the countryÆs longstanding problems, experts said at a gathering in Hong Kong this week.
ChinaÆs first enterprise bankruptcy law was established in 1986, but itÆs only with the latest revision, signed in August 2006 by president Hu Jintao, that employee protection has been subordinated to secured creditors.
These will now be refunded to the value of the collateral. Any deficiency will be treated as an unsecured claim.
Unsecured claims will be met after post-bankruptcy administrative costs and expenses auxiliary worker benefits such as...
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