The Supreme People's Court ("SPC") and the National Development and Reform Commission ("NDRC") have recently drafted the Opinions on Improving the Supporting Systems for Corporate Bankruptcy and Protecting Administrators in Performing Their Duties in Accordance with the Law to Further Optimize the Business Environment (Draft for Comment) (the "Draft for Comment") for public comments by October 18, 2020.
The Draft for Comment contains the content in seven aspects including optimizing the registration system for cancellation and status change of bankrupt enterprises, and covers 19 measures including giving more financing support for bankrupt and reorganized enterprises and repairing corporate tax-paying credit. Among others, the Draft for Comment stipulates that, after a bankruptcy application is accepted, the administrator shall independently publicize the matters such as the initiation, type and switching of the debtor's bankruptcy procedures in the national enterprise credit information disclosure system within ten days after the occurrence of the relevant procedural matters, and share the relevant information with taxation, property registration and other relevant departments. The Draft for Comment also proposes that banking financial institutions shall, in accordance with the principles of marketization and the rule of law, provide credit support for restructured enterprises that have restructuring values and possibilities and are in line with the direction of national industrial policy.