Study on the Relief of Undeclared Claims in Reorganization Procedure

Author: Zou Hailin

 

 

Abstract: The relief of undeclared claims in reorganization procedure originates from Article 92 Paragraph 2 of Enterprise Bankruptcy Law, but there are disputes overits understanding and even doubts about the value of its existence. The relief of undeclared claims should first be discussed within the framework of procedural law. The core issue of the relief of undeclared claims is the relief of claims in bankruptcy, which derives from the creditor's claim basisafter being "adjusted" by bankruptcy procedure. The "loss of right" of undeclared claims in the reorganization procedure does not affect the relief of undeclared claims after the completion of the reorganization procedure. Relief of undeclared claims after the implementation of the reorganization plan conforms to the principle of fair treatment of centralized liquidation of claims and debts in bankruptcy proceedings, will not harm the interests of various parties involved in the reorganization procedure, and has no substantial negative impact on the negotiation, voting, approval and implementation of the reorganization plan. In judicial practice, some courts have tried to "reserve" the repayment funds of undeclared claims or restrict or exclude the relief of undeclared claims through reorganization plan and there is room for discussion on the application of law and whether such practice conforms to the logic and institutional structure of reorganization procedure constructed by Enterprise Bankruptcy Law. In order to implement the system of relief of undeclared claims, China should improve the ideas relating to legal facts that affect the relief of undeclared claims, such as the deadline for supplementing declared claims in reorganization procedure, the interruption of limitation of action, the counterpart and the method of exercise of undeclared claims, and the calculation of undeclared claims.

Keywords: bankruptcy claims; undeclared claims; reconstructed debtor; reorganization plan; relief

 

Author:Zou Hailin, research fellow, Institute of Law, Chinese Academy of Social Sciences.

 

Source: 8 (2022) Journal of Law Application.