For claims not declared in the reorganization procedure, if the creditor has not had their claims confirmed by the bankruptcy administrator and the court, nor participated in the creditors' meeting to vote on the draft reorganization plan, does this mean that the undeclared claims cannot continue to be claimed for repayment upon the conclusion of the reorganization plan?

I. Legal Provisions

According to the provisions of Article 56 of the Enterprise Bankruptcy Law of the People's Republic of China:

Where a creditor fails to declare their claim within the time limit for declaration of claims as determined by the people's court, they may supplement the declaration before the final distribution of the bankruptcy property; however, no supplementary distribution shall be made to them for the distributions already carried out. The expenses incurred for the examination and confirmation of the supplementary declared claim shall be borne by the person who makes the supplementary declaration.

A creditor who fails to declare their claim in accordance with the provisions of this Law shall not exercise their rights in accordance with the procedures prescribed by this Law.

Meanwhile, Article 92 stipulates that:

A reorganization plan approved by the people's court shall be binding on the debtor and all creditors.

Where a creditor fails to declare their claim in accordance with the provisions of this Law, they shall not exercise their rights during the period of implementation of the reorganization plan; after the completion of the implementation of the reorganization plan, they may exercise their rights in accordance with the repayment conditions for the same category of claims as stipulated in the reorganization plan.

The rights enjoyed by a creditor against the guarantors and other joint and several debtors of the debtor shall not be affected by the reorganization plan.

II. Repayment Rules

Based on the above legal provisions and combined with relevant practical experience, the author believes that the handling of undeclared creditors' claims shall mainly comply with the following repayment rules:

1. No Right to Claim Participation in Reorganization Procedural Rights

During the bankruptcy reorganization process, if a creditor fails to declare their claim in a timely manner, they shall lose all procedural rights to participate in the bankruptcy proceedings as stipulated in the Enterprise Bankruptcy Law, including:

• The right to attend creditors' meetings
• Voting rights
• Right to raise objections
• Right to receive distributed property, etc.

2. No Right to Claim Supplementary Distribution of Distributed Property

Even if a supplementary declaration is made before the final distribution of the bankruptcy property, no supplementary distribution shall be made to the creditor for the distributions already carried out, and the creditor shall also bear the relevant expenses incurred for the examination and confirmation of the supplementary declared claim.

3. No Exercise of Debt Repayment Rights During Reorganization Period

If the debtor enters the reorganization procedure and the creditor fails to declare their claim within the time limit, the creditor shall not exercise any right to claim debt repayment during the implementation period of the reorganization plan. However, the creditor does not lose their substantive right to claim debt repayment, and still has the right to exercise their rights in accordance with the repayment conditions for the same category of claims as stipulated in the reorganization plan after the completion of the implementation of the reorganization plan.

III. Remedial Measures

If a creditor fails to declare their claim in a timely manner during the reorganization procedure, to maximize the protection of their legitimate rights and interests, it is recommended to take the following remedial measures:

1. Timely Supplementary Declaration of Claims

Bankruptcy proceedings are a form of collective repayment procedure. If a creditor fails to assert their claim to the administrator or creditors in a timely manner, the claim cannot be repaid under the arrangement of the bankruptcy proceedings. If a creditor fails to declare their claim within the time limit for declaration of claims determined by the people's court due to objective reasons, thus being unable to participate in the bankruptcy proceedings, it is obviously unfair to the creditor.

Where a creditor fails to declare their claim within the time limit for declaration of claims determined by the people's court, the creditor may supplement the declaration of the claim in accordance with the provisions of the first paragraph of Article 56 of the Enterprise Bankruptcy Law to minimize losses and protect their legitimate rights and interests.

2. Timely Assert Claims to the Administrator or Debtor

The creditor shall timely assert their claim to the administrator or the debtor to interrupt the statute of limitations for litigation, and retain relevant evidence. In view of the uncertainty of the entire reorganization period, the creditor may assert their rights multiple times to prevent the statute of limitations for litigation from expiring again. After the completion of the implementation of the reorganization plan, the creditor may exercise their rights in accordance with the repayment conditions for the same category of claims as stipulated in the reorganization plan.

3. Legally Utilize Procedures to Ensure Enforcement of Claims

For undeclared claims during the reorganization period, since the relevant content of such claims has not been included in the ruling on confirmation of claims and the ruling on approval of the reorganization plan, the creditor cannot directly apply to the people's court for compulsory enforcement of the above two rulings without confirmation.

During the reorganization period, the exercise of undeclared claims is restricted. However, after the completion of the implementation of the reorganization plan, the relationship between the debtor and the creditor is no longer regulated by the Bankruptcy Law. The creditor may directly initiate a civil lawsuit in the people's court, and after the people's court confirms their undeclared claim in the form of a judgment or mediation agreement, if the debtor still fails to perform the repayment obligation, the creditor may apply to the people's court for compulsory enforcement.