In an exclusive column for TheDeal.com, Alan G. Quasha, founder, president and CEO of Quadrant Management Inc., weighs in on China's new bankruptcy law, which took effect in June after 12 years of legislative debate.
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Quasha has firsthand knowledge of the new law's impact. His firm was brought in to advise a troubled medical equipment supplier in early 2007 -- before the new bankruptcy law took effect.
The new Enterprise Bankruptcy Law, or EBL provides that for the first time, FIEs -- not just state-owned enterprises -- could enter bankruptcy proceedings through an organized process:
In addition, the EBL allows for alternatives to bankruptcy, such as a reorganization, which takes cues from U.S. Chapter 11 proceedings and allows a company to emerge and continue to operate, and "conciliation," which provides a framework for distressed companies and their creditors to agree on a settlement.
Read the column from the Jan. 10 issue of The Daily Deal
