Preferential payoffs and last-minute asset shifts can be unwound — keep the lookback calendar honest.
China’s Enterprise Bankruptcy Law empowers administrators to seek revocation of preferential payments, transfers at obvious undervalue, and certain security grants made within statutory periods before acceptance, plus actions against fraudulent concealment. Counterparties may have to return value. This wiki is avoidance orientation. Set-off and secured-priority pages are related fights. Distressed M&A diligence must screen clawback risk.
4 questions before you choose the route.
This page identifies the right question and evidence. It does not determine the legal outcome on a reader’s facts.
What transaction and when?
Timeline.
WhenPreference, undervalue, or fraud theory?
Label.
TheoryCounterparty good-faith defence?
Defence.
DefenceLitigation by administrator started?
Case.
CaseWorking rule: Map the regulated role before marketing or launch in China.
The signal ledger.
These facts move the question beyond a label and into a product, money-flow and control analysis.
Bring a compact evidence docket—not a pitch deck.
Give a compliance team or counsel the operating facts that reveal the perimeter.
Questions people ask before they build.
Short answers for orientation. The right result can change with the service model and current rules.
Are ordinary course payments safe?
Safer, not automatic. Facts and timing matter.
Where is distressed M&A?
Open /distressed-manda-in-china.
Primary authorities
Reviewed sources support orientation, not a fact-specific assessment.