Transformation and Renewal: Corporate Reorganization and Investment in China (Bilingual)

With the development of China’s market economy, China has great potential for investment opportunities. The bankruptcy reorganization, mergers and acquisitions will undoubtedly spring up one after another, and will become one promising strategy to make investment in China.

This book aims at providing investors with valuable insights on how to invest in the Chinese capital markets as well as helping them formulating the strategy to engage mergers and acquisitions of the distressed companies pending bankruptcy as an alternative investment venue.

The new Bankruptcy Law provides an exit for the distressed companies to turnaround or to conclude their businesses. However, China is still perfecting its corporate legal system and companies must cope with the rules and procedures that change from time to time. This is further complicated by the diverse risks and rewards offered by each investment. For companies in China, whether foreign or domestic, substantial polishing and alterations are needed before sparkling in the financial world. Therefore, it is common that these companies may concede control to creditors when undergoing reorganization and seeking financing.

In addition, onshore and offshore enterprises in China also encounter additional obstacles, such as employment and tax requirements. As a company undergoes restructuring, it may need to lay off redundant or excessive employees. The reorganization process also creates tax issues when a company needs to cash in extra assets and equipment. The Chinese government is taking steps to prevent unscrupulous investors from manipulating the developing corporate environment, specifically in these two areas.

How Users Can benefit from This Book

The book opens by introducing unique and important positions of players including the creditors, the debtor company, the shareholders, the management, the administrator, strategic investors, and the bankruptcy court in this new system and their intertwining relationships and roles.

In addition, this book also introduces legal procedures of corporate reorganization, covering the process step-by-step, including the filing of the bankruptcy petition, the bankruptcy court’s review, the formulation, approval, and implementation of a reorganization plan.

Based on above, this book gives deep analysis on the following topics and issues in corporate reorganization:

• The benefits and risks of investing in a company undergoing restructuring in China;
• The corporate reorganization methods China has adopted from the western world for A-share listed companies;
• The means and difficulties investors use to rejuvenate a company undergoing reorganization;
• Foreign investment-related legal issues in the reorganization process;
• The labor issues that stem from a company reorganization, especially the procedures that reorganizing companies must follow if they wish to downsize their staff;
• The risks that offshore creditors face and suggestions on how to revive their investments under China existing legal system;
• Taxation issues in corporate reorganization.

Features & Benefits
--- Clear and unique perspective: This guide is deeply concerned about how to protect the legitimate interests of investors in the midst of corporate reorganization procedures.
--- Comprehensive contents with some hot issues: This guide not only includes comprehensive introduction about corporate reorganization procedures, but also gives deep analysis on important and difficult issues for investors combining practical experience
-- Large number of useful tips and advice: This book offers valuable advice together with best practices which are provided by lawyers with broad experience on those important and difficult issues for investors during the procedure of corporate reorganization.
--- Bilingual: This bilingual book meets different reading demands of different kinds of readers.