23 ALB CHINA INSOLVENCY & RESTRUCTURING GUIDE 2023 not only can companies navigate their challenges and return to healthy development, but they can also safeguard the interests of both creditors and debtors to the fullest extent. China's revival system grants competent capital contributors the right to initiate the revival procedure[6]. However, from a textual perspective, the rights of debtors, competent capital contributors, and creditors to file reorganization applications differ. Although working guidelines of courts in various places have somewhat expand the application of Article 70 of the Enterprise Bankruptcy Law, the practices are not uniform, and related working guidelines lack in terms of effectiveness and scope of application. Additionally, special provisions for initiating revival procedures for specific debtors, such as listed companies and financial institutions, are scattered across relevant laws for specific financial institutions, several conference summaries, and working guidelines of local courts. These all await unified amendments to the Enterprise Bankruptcy Law for improvement or clarification through corresponding judicial interpretations. When considering the management model for a debtor during the reorganization phase, both the debtor's self-management and the bankruptcy administrator's complete takeover have their own advantages and disadvantages. The trend in the application of Articles 73 and 74 of the Enterprise Bankruptcy Law shall be to consider the comprehensive takeover by the bankruptcy administrator as a remedy in situations where the debtor's internal governance mechanism fails, operational managers pose moral hazards, and creditors' interests are severely harmed[7]. In terms of drafting and executing the revival plan, to realize the objective of salvaging companies in distress and to guarantee the seamless endorsement and enactment of the plan, the interests of all stakeholders shall be taken into account, involving specific schemes for the distribution of rights and interests among parties. The feasibility of the revival plan is one of the important conditions considered by the People's Court during review and approval. However, laws, judicial interpretations, and related meeting minutes do not specify its standards, as the business plans involved encompass many commercial and professional issues. In practice, specialized agencies and personnel are needed to provide specific plans and detailed argumentation. [6] Refer to Wang Weiguo's Essence of Bankruptcy Law (Second Edition), published by Law Press, 2020 edition. [7] Refer to Xu Yangguang and Wang Jing's Research on the Legal System for Bankruptcy Reorganization, published by Law Press, 2021 edition.
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