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Bankruptcy Regulations of Shenzhen Special Economi
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 @@ Article 26. After the scheme has been approved by the Court, the
Court reserves  the right to revoke its approval and immediately
declare the person (entity) who applies for conciliation bankrupt
if any one of the following situations occures:
 (1)  The conciliation scheme has affected the lawful rights and
interests  of creditor(s)  who  was  absent  at  the  creditors'
meeting  (at  which  the conciliation scheme was adopted). The
"aggrieved" creditor(s) has filed his/ her compliant with the Court
within 10 days after that creditors' meeting and the Court has verified
such compliant as valid;
 (2)  A cancellation application has been submitted to the Court
by the creditor(s)  who hold(s) a simple majority of the total
amount of the unguaranteed creditor rights of the bankrupt company
in case the person (entity)  who  applies  for the conciliation
fails to, or is unable to, execute the scheme; or
 (3)  It  is  discovered, within six months after the conciliation
has been adopted,  that  the person (entity) who applies for the
conciliation has committed  fraud about the conciliation and his/her
committed fraud has been verified as valid.
CHAPTER VI BANKRUPTCY
SECTION 1 BANKRUPTCY PROCLAMATION
 @@  Article  27.  After  the  Court has adjudicated the debtor
bankrupt, the Court  shall  issue the bankruptcy proclamation. The
bankruptcy proclamation shall  include  the  time  limit for the
creditor(s) to claim his creditor rights, the date of the first
creditors'  meeting and the date for the verification of creditor
rights.  The  Court shall send the bankruptcy proclamation to the
bankrupt company and creditor(s) who are already known to the Court.
 @@  Article  28.  The duration of the bankruptcy procedure-starting
from the date  the Court issues its bankruptcy proclamation to
the  date  the bankruptcy procedure is completed - shall be 180
days.  Under  special circumstances,  the  Court  can  issue  an
extension adjudication of the duration.
 @@  Article  29.  The  Court  may adjudicate termination of a
bankruptcy  procedure  (after  it  has  issued the bankruptcy
proclamation) if the Court has received from the liquidation committee
a termination application which has been approved by creditor(s) at
a creditors' meeting and the asset of the bankrupt company is found to
be insufficient to cover the expenses that would have incurred as a
result of the bankruptcy.
 @@  Article  30. The Court may take restraining action against any
member of the  board of directors or any other senior management
personnel of the bankrupt  company who has impeded the process of
the bankruptcy procedure but  the  Court's  measures must be in
conformity with the provisions in the Civil  Procedural Law of the
People's Republic of China (for trial implementation).
SECTION 2 BANKRUPTCY ASSETS
@@ Article 31. Bankruptcy assets include:
 (1)  Property belonging to the bankrupt company at the time when the
company is declared bankrupt;
 (2)  Other  property  rights that are within the purview of and
shall be exercised by the bankrupt company; and
 (3)  Property  recovered by the bankrupt company in accordance with
Article 11 of the present Regulations.
 @@  Article  32.  The liquidation committee shall have the rights
concerning the management and disposition of the bankruptcy assets
of the bankrupt company.
SECTION 3 BANKRUPTCY CREDITOR RIGHTS
 @@  Article  33.  Bankruptcy  creditor  rights  refer  to  the
unguaranteed creditor rights produced before the company is declared
bankrupt.
 Creditor  rights  that  have  not  yet been due at the time the
company is declared  bankrupt  shall  be considered mature but the
interest that would have been generated on such creditor rights and
has not yet been due shall be written off.
 @@  Article  34.  The  following items shall not be considered as
bankruptcy creditor rights:
 (1)  Interest  accrued  from the creditor rights after the company
has been declared bankrupt;
 (2)  Expenses  disbursed by creditor(s) as a result of his/her
participation in the bankruptcy procedure; and
 (3)  Damage compensation, penalty and fine for delaying payment due
to the company's  failure  to  execute its contract terms as a
result of its bankruptcy.
 @@  Article 35. Creditor(s) shall, within the period stipulated
by the Court, report to the liquidation committee, the amount of and
when, where and  how  his/her  creditor rights are acquired and the
documentary evidence proving his/her claim.
 @@  Article  36. Creditor rights which have not been reported
to the liquidation committee within the time period stipulated by the
Court shall 

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