Case playback:

　　A Industrial Co., Ltd. was founded in 1992, is the world's largest retail chain company B, the world's largest suppliers of barbecue furnace. In 2008 March, affected by many factors, the export tax rebate rate cut, the appreciation of the renminbi, raw material prices, banks tightening of liquidity, A full production, is on the verge of bankruptcy. In 2008 May, A company to court for bankruptcy reorganization, and proposes four reforming scheme: "debt-equity swap"; A company leased to the creditors; extend the debt; debt at a discount, a one-time payment. In 2008 December, a meeting of creditors through A fourth reforming scheme, namely A company to the transfer of shares or by third people guarantee way into debt repayment of debt investors, for 20.05% of the total, and the court ruled that the first payment four months after the approval of repayable within. In 2009 May, the Court adopted the reforming scheme of A company. Subsequently, although there are many investors interested in A company, because A company assets in a frozen state, has been unsuccessful. In 2009 September, A company did not pay the first stage should be repayments, are not in accordance with the reorganization plan execution. A company to court for a period of 3 months, dismissed by the court. In 2009 October, the local government as a creditor to the court to submit application for termination of reorganization plan. In October 26, 2009, the court ruled that the bankruptcy liquidation of company A. Bankruptcy, creditors do not want to auction A company assets, and the debt of the way to safeguard the interests of the creditors, but it was too late.

　　Intensive analysis:

　　The basic law of the market economy is the survival of the fittest, business failure to withdraw from the market is the inevitable result of competition. But as the scale of production socialization and organizational forms of enterprises, bankruptcy liquidation of the consequences caused by the disintegration of more and more serious. For example, State-Owned Company, enterprise staff, because of serious irresponsibility or breach of privilege, resulting in State-Owned Company, enterprise bankruptcy to dereliction of duty crime; corporate directors, supervisors and senior management personnel in violation of the obligations of faithfulness, diligence, causes the bankruptcy of the enterprise, shall bear civil liability according to law. And since the conclusion of the bankruptcy proceedings shall not hold any directors, supervisors, senior management staff of three years; and due to the large number of workers unemployment caused social unrest.

　　In order to avoid elimination rate is too high cause imbalance of social economy and the waste of social resources, countries are actively seeking to help enterprises to solve the economic crisis, bankruptcy prevention measures. Generally speaking, the system of bankruptcy prevention in all countries of the world are not judicial prevention, judicial prevention two modes. The judicial prevention includes court bankruptcy conciliation and court bankruptcy in two ways. Non judicial prevention, is facing bankruptcy creditor and debtor or with third people outside the court, in accordance with the wishes of the parties or get clean up of the creditor's rights debt agreement preventing bankruptcy. The court bankruptcy reconciliation, refers to the court, to prevent bankruptcy by creditors and debtor to reach a settlement agreement. Reforming the bankruptcy court, is refers to under the auspices of the court, attended by the bankruptcy creditors, debtors and other related third people, through the formulation and execution of reorganization plan to prevent bankruptcy.

　　Through the prevention of bankruptcy, bankrupt or insolvent debtor enterprise can establish rescue measures, for the regeneration of the opportunity. Through the reconstruction of enterprise debt, creditor debt recovery ratio can be obtained not only higher than the bankruptcy, the debtor can not collapse, investors can continue to receive the existence of interest. But in the prevention of bankruptcy on the road, there are many risks, such as planning, coordination, government and court stakeholder communication etc.. Once the improper disposal, enterprises will lose the opportunity of regeneration.

　　In this case, A, no hope of reconciliation case, apply to the court for bankruptcy reorganization. The four scheme, the creditors finally chose the reforming scheme introduces investor. But for a bankrupt enterprises, there is no shell resources and intangible assets that can be used, it is difficult to find strategic investors to offer. In cannot perform the restructure plan, A company and stakeholders of ineffective communication, strong support, the government did not get the court and the creditors, to bankruptcy.

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