Reforms proposed under China’s new enterprise bankruptcy law will include western-style provisions and practices, which give creditors more direct involvement and power.  According to a recent article in The Asian Banker, Fitch Rating Agency welcome such new provisions, however Fitch feels it will be years before the proposed new bankruptcy law is widely used and consistently applied, given the time and detailed rules and procedures required to ensure the successful implementation of any new bankruptcy law.   Additionally, an effective judicial infrastructure can only be established over time as the judges accumulate experience and expertise in handling bankruptcies and reorganizations.  Source: The Asian Banker December 8th, 2006

BIIA Newsletter January – 2007 Issue