What Is Corporate Debt Restructuring?

Debt restructuring, also known as debt reorganization, refers to a matter where the creditor makes a concession in accordance with the agreement reached with the debtor or the court's ruling in the event that the debtor has financial difficulties. That is, as long as the original debt repayment conditions are modified, that is, the debt repayment conditions determined at the time of debt restructuring are different from the original agreement, they are all regarded as debt restructuring.

debt reorganization

The following situations do not belong to debt restructuring:

Issued by the debtor

Settle debt with assets

The debtor transfers its assets to creditors in a debt restructuring way to settle debts. The assets that debtors usually use to pay off debts are mainly cash, inventory, financial assets, fixed assets, and intangible assets. Paying off debts in cash usually means paying off debts with cash lower than the book value of the debt. If the debt owed is paid in the same amount of cash, it is not a debt restructuring. ^[1]

Settle debt with assets

(A) with

Debt restructuring principles. Procedures generally followed are those that have been lost or cannot be recovered

Debt restructuring is essentially a legal activity that aims to change in a certain way

Has the same extermination

Model Debt Restructuring Agreement

Party A: **** Group Co., Ltd. (hereinafter referred to as "**** Group")

Party B: City ****** Limited Liability Company (hereinafter referred to as "****")

Party C: **** Limited (hereinafter referred to as "****")

Given:

1. The **** Group is an independent legal person established in China and legally existing in accordance with Chinese law. It has the right and ability to perform this agreement, and has the right to make independent decisions on disposal of its own assets, including the disposal of its own debts. Decide;

2. The Municipal Development Department is an independent legal person established and legally existing in China in accordance with Chinese law. It has the right and ability to perform this agreement, and has the right to make independent decisions on disposal of its own assets, including the decision to dispose of its own debts;

3. **** is an independent legal person established and legally existing in China in accordance with Chinese law. It has the right and ability to perform this agreement, and has the right to make independent decisions on disposal of its own assets, including the decision to dispose of its own claims and debts. ;

4.The parties to the agreement intend to carry out corresponding transfers, offsets and offsets between their claims and debts to achieve the purpose of debt restructuring;

In view of this, the parties to the agreement have signed this agreement on the transfer of creditor's rights and debts, and the assignment of the agreement, so as to abide by them together.

I. Creditor's rights and debts between the parties to the agreement

As of the signing of this agreement, the **** Group's claims on **** remaining land and land price of RMB **** have not been recovered.

2. Transfer of creditor's rights and debts between parties to the agreement

The parties to this agreement agree and confirm that the **** Group transferred its creditor's rights to **** under [Article 1 of this agreement] to [] [], and **** the obligee performing the debt changed to ** **;

Offset of claims and debts

The parties to this agreement hereby confirm that after the fulfillment of the transfer of the above-mentioned Article 2 creditor's rights, the total amount of monetary claims enjoyed by **** under this agreement for **** shall be RMB ****.

4. Commitments and guarantees of the parties to the agreement

4.1 The parties to the agreement undertake and guarantee that the signing and performance of this agreement have performed all necessary review and approval procedures and obtained all necessary authorizations;

4.2 The parties to the agreement promise and guarantee that the claims and debts involved in this agreement have all expired, and there are no situations where laws, regulations or agreements stipulate that they cannot be offset.

4.3 **** The group agrees and confirms that as the assignor of the creditor's rights, it enjoys independent, legal and complete disposition rights over the transferred creditor's rights, and the transfer of such creditor's rights will not constitute any other agreement or legal document that it has signed. Violation; since the effective date of this agreement, that is, to perform the offset of creditor's rights and debts strictly in accordance with the agreement;

4.4 **** Agree and confirm that, as a debtor, the debtor will be fulfilled in a timely manner to the changed creditor [] [] as promised;

V. Settlement of disputes:

5.1 Any disputes arising from the interpretation and implementation of this Agreement or related to this Agreement shall be settled through friendly negotiation. If the negotiation fails, either party shall have the right to sue to the People s Court in the jurisdiction where Party A is located. .

Effectiveness of the agreement and others

6.1 This agreement takes effect on the date when it is signed by the authorized representatives of the parties and stamped with the official seal.

6.2 If there are any outstanding matters in this agreement, the relevant supplementary agreements shall be signed separately after the parties to the agreement have negotiated.

6.3 The original of this agreement is in triplicate. Each party to the agreement holds one copy, which has the same legal effect.

(No text below)

(No text on this page, which is the signing page for the debt restructuring agreement)

Party A: **** Group Co., Ltd.

Authorized Representative:

Party B: **** Limited liability company

Authorized Representative:

Party C: **** Co., Ltd.

Authorized Representative:

Date of signature:

Contents of the reorganization agreement

The main terms of the debt restructuring agreement:
1. Claims and debts between parties to the agreement;
2. Transfer of creditor's rights and debts between parties to the agreement;
3. Offset of claims and debts;
4. The commitments and guarantees of the parties to the agreement;
5. Settlement of disputes;
6. Agreement comes into effect and others. ^[4]