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How shall the bankruptcy procedure affect ongoing disputes/judgment enforcement procedures involving the insolvent enterprise as a party/a judgment debtor?

Disputes/judgment enforcement procedures involving an insolvent enterprise as a party/a judgment debtor shall be suspended during a bankruptcy. The suspension shall be implemented as follows:

    • The civil judgment enforcement agencies must temporarily suspend judgment enforcement procedures that name the enterprise as a judgment debtor, except for a judgment or decision compelling the insolvent enterprise to pay compensation for its employees’ life, health, honor or salaries;
    • The People’s Court or Arbitration shall temporarily suspend the settlement of civil, business, commercial or labor cases related to the property obligation in which the enterprise is a party. The Court must separate and temporarily suspend the civil portion of a criminal or administrative case related to the property obligation in which the enterprise is a party;
    • The competent agencies and organizations shall temporarily suspend the handling of security assets of the enterprise for secured creditors.

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