China's proposed new Bankruptcy Law

As a reflection of its move toward a more market based commercial legal system, China is proposing to overhaul its Bankruptcy Law

(PRWEB) June 26, 2004 -- The National Peoples Congress has been contemplating an overhaul to the 1986 Bankruptcy Law for quite some time. The new legislation has been formally proposed and may be enacted as soon as early 2005.

This is a large step forward for China. The new proposed law rectifies a number of flaws in China's Bankruptcy Law. Namely:

·Covers individual bankruptcy
·Covers all companies, including private and financial
·Liquidator is court appointed
·Creditors are involved in the bankruptcy process

Overseas investors should welcome this proposed change as it will provide additional certainty when dealing with distressed assets and is a reflection of Chinas move towards a more market based commercial legal system. Law firms such as Lehman, Lee and Xu look forward to assisting clients liquidate or find buyers for their assets.

For more information, please visit our Bankruptcy FAQ at http://www.lehmanlaw.com/FAQ/faq/BL.htm