The People’s Republic of China (“PRC“) recently launched two initiatives in relation to enterprise bankruptcies. These initiatives will provide significant benefits to both applicants and creditors when they seek to exercise their respective rights during the enterprise bankruptcy process.

The recent default of Suntech Power Holdings Co. Ltd. (“Suntech”) on its convertible bonds is a reminder of the challenges that foreign creditors may face in the event that the Chinese company they have invested in becomes the subject of bankruptcy or insolvency proceedings.