MACAU SAR, CHINA Law and Practice Contributed by: Calvin Tinlop Chui and Carla Veiga, Lektou
• detail the causes of insolvency with supporting evidence; • append the documentation required by Article 1048 of the Civil Procedure Code, including a list of creditors with addresses, amounts, maturities, and guarantees; • identify all pending actions and executions; • provide an inventory of assets and values if accounts are not organised; and • for legal persons, include the corporate authorisa - tion approving the filing. Unlisted creditors may file claims up to fifteen days before the first creditors’ meeting. The bankruptcy administrator, with designated creditor assistance, compiles a list of creditors by status for the meeting: • undisputed claims listed by the debtor; • claims listed but disputed as to type or amount; • partially disputed claims; • fully disputed listed claims; and • claims by previously unlisted creditors. Uncontested claims are recognised, and claims sup - ported by a majority of creditors present representing a majority in value may be provisionally recognised for meeting purposes. Where voting value is disputed, the administrator’s valuation prevails provisionally, subject to court review. Opening the proceedings generally stays individual enforcement and consolidates related actions affect - ing the estate into the bankruptcy case, except for suits where the debtor is plaintiff, matters of personal status and capacity, and cases involving inseverable co-defendants. Estate management passes to the administrator under court supervision. Directors must co-operate, deliver books and records, and avoid acts prejudicing the estate, with breaches attracting civil and potentially criminal liability. The creditors’ meet - ing – convened and chaired by the judge with the public prosecutor attending – receives reports and decides on business continuation, measures to avert bankruptcy, and voting on a concordata or creditors’ agreement. Only creditors whose claims are not fully contested by the administrator may vote, and a credi - tor may not vote on its own claim.
Executory and pre-insolvency contracts are adminis - tered according to general insolvency principles. The administrator may continue or reject performance where lawful and beneficial to the estate, subject to curing defaults and preserving counterparties’ sub - stantive rights. Insolvency- or filing-triggered termi - nation or acceleration clauses may be unenforceable insofar as they conflict with mandatory insolvency rules, while secured creditors retain their security in the absence of consent, payment, or adequate pro - tection. Arbitration is available for disputes that are arbitrable under substantive law and do not trench on the insol - vency court’s exclusive functions, particularly where the estate seeks relief under pre-existing contracts governed by arbitration agreements. Core insolvency matters – including commencement, claim verification and ranking, stays, plan confirmation, asset realisa - tion, and distribution – are non-arbitrable and fall with - in the exclusive jurisdiction of the insolvency court. 5.3 The End of the Liquidation Procedure(s) Initially, debtors may retain the authority to manage their assets and run their company, under the guid - ance and supervision of the bankruptcy administra - tor and designated creditors. However, they are pro - hibited from performing any action that would result in a reduction of the estate or a modification of the standing of creditors. Upon the declaration of bank - ruptcy, the debtor/bankrupt is not allowed to handle or sell their current and future possessions, which then become part of the bankruptcy estate. The bankrupt - cy administrator assumes responsibility for represent - ing the bankrupt in all financial matters related to the estate. The declaration of bankruptcy entails: • closing the bankrupt’s current accounts; • the immediate maturity of all debts; • the discontinuation of interest or other charges on the bankrupt’s obligations; and • the cessation of discounting on obligations subject to discounting. Creditors are repaid from the proceeds of the sale of assets within the bankruptcy estate. Initially, these
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