Editorial: The Upside to Bankruptcy

Ten years after China’s Enterprise Bankruptcy Law was put in place, it is clear that the system, which was designed to allow insolvent companies to gracefully bow out of the market, has not been widely accepted.

The former solar panel giant LDK Solar was a star company when it went public on the New York Stock Exchange 10 years ago in one of the biggest IPOs ever for a Chinese energy company. However, the company has struggled with its reorganization plan in the years since it went bankrupt.