[Direct answer]In the Beijing area, the debt crisis of small and medium-sized enterprises should be handled in a tiered manner, and all creditors should not be treated as a single category. The first step is classification: distinguishing between secured claims and ordinary claims, debts owed by the enterprise and shareholders' personal debts, and overdue debts and debts that have not yet matured. This determines the negotiation space and the order of disposal. The second step is consultation: secured creditors usually hold the initiative and can prioritize stabilizing the relationship through negotiation on extensions, installment payments, and interest adjustments. Early communication with ordinary creditors is also necessary to avoid litigation leading to account freezes that affect operations. The third step is to advance asset disposal and operational improvement simultaneously: liquidate non-core assets, focus on recovering payments for the main business, and seek policy and financing support to form a stable source of cash flow. The fourth step is risk isolation: shareholders' personal assets and corporate assets should be strictly separated to avoid the transmission of corporate debts to individuals due to personal guarantees or confusion. It should be particularly noted that shareholders who provide personal guarantees for the company's debts or withdraw funds from the company face extremely high risks and should be fully verified at the early stage of the crisis.Creditor's rights and debts, and enforcementThe services in this column can help sort out the debt structure.

1. Problem background and typical scenarios

Common signs that a company is facing a debt crisis include: major customers starting to extend payment periods, banks demanding early repayment, suppliers stopping credit sales, and arrears in tax and social insurance payments. The most common problem in the crisis stage is that all efforts are focused on responding to lawsuits, while the recovery of operations and the classified management of creditors are neglected.Business and contract disputes in enterprisesThe analysis of contract performance and payment term management in the column can be used for reference.

II. Key points of contention

Focus One: Debt Classification and Priority Order. Focus Two: The Feasibility of Extension and Installment Plans. Focus Three: Valuation and Procedures for Asset Disposal. Focus Four: Clearing Up Shareholders' Personal Guarantees. Focus Five: Responding to Multiple Lawsuits and Maintaining a Unified Position. Focus Six: Applicable Conditions for Reorganization and Bankruptcy Paths.Special services and other casesThe description of program selection in the column can be supplemented. Focus 7: Identify the relationship between creditors and debtors to avoid liability confusion and asset loss caused by related-party transactions.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm typically handles corporate debt crises in four stages. 1. **Comprehensive Audit**: Within a short timeframe, compile a debt ledger that lists each debt's creditor, amount, maturity date, guarantee status, and litigation status. At the same time, verify potential risks in external guarantees and related-party transactions, as these are often hidden risk points. 2. **Classified Negotiations**: Develop communication strategies based on creditor types and their demands. Prioritize negotiations with secured creditors to secure repayment flexibility, strive to maintain payment terms with supply-chain creditors, and negotiate loan extensions rather than immediate withdrawal with bank creditors. 3. **Internal Governance**: In many corporate crises, management's chaotic decision-making and financial opacity are accelerating factors. It's crucial to swiftly establish a unified external communication strategy and cash flow control mechanism. 4. **Path Selection**: When negotiations fail to resolve the crisis, rationally assess the pros and cons of restructuring, settlement, and bankruptcy liquidation to avoid further asset value erosion through delay. It's important to note that once a shareholder's personal guarantee liability is triggered, personal risks will be significantly amplified. Therefore, at every stage, priority should be given to assessing the exposure of personal assets.\nFinancial capital and cross-border transactions involving foreign entitiesThe funding arrangement ideas in the column can be used as a reference for further consideration.

IV. Practical suggestions and legal basis

Action proposals: 1. Immediately stop taking on new non-essential debts; 2. Complete the verification of debt ledgers and guarantees; 3. Sign written extensions or installment agreements with major creditors; 4. Liquidate non-core assets to raise cash; 5. Unify external communication strategies to avoid breaches caused by multiple commitments; 6. Conduct a comprehensive assessment of personal guarantee risks and formulate a remediation plan. Legal basis: - The Contract Chapter of the Civil Code of the People's Republic of China and relevant provisions on enterprise legal persons; - The Enterprise Bankruptcy Law of the People's Republic of China (implemented on June 30, 2007) regarding restructuring, reconciliation, and bankruptcy liquidation; - The Company Law of the People's Republic of China (amended and implemented on October 26, 2018) and related provisions; - Specific applications shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

Firstly, procrastination is the main factor contributing to the worsening of the crisis, and the cost of early handling is far lower than that of later handling. Secondly, shareholders' personal guarantees are the greatest hidden risks and should be cleared up as a priority. Thirdly, do not make different commitments in multiple scenarios, as this will directly constitute a breach of contract. Fourthly, asset disposal requires procedural compliance to avoid disputes arising from low-price disposal. Fifthly, keep written communication records with creditors, which serve as the basis for subsequent negotiations. Sixthly, assess whether it is necessary to introduce professional institutions to design debt restructuring plans.Creditor's rights and debts, and enforcementThe column can provide support in organizing debt records.

VI. Frequently Asked Questions

Q1: If a company can't repay the money, who should they talk to first?

It is generally recommended to negotiate with secured creditors first. The reason is that these creditors hold the core assets and operational lifelines of the enterprise. If they prioritize realizing their claims through litigation, it may lead to account freezes and asset seizures, making it difficult for the enterprise to maintain its operations and reducing the room for negotiation. After stabilizing these creditors, efforts should be made to gain the understanding and cooperation of other creditors. At the same time, contact should be made with supply-side creditors simultaneously to strive to maintain necessary credit lines through payment plans, so as to avoid disruptions in the business chain. The entire negotiation process should be conducted in writing to avoid subsequent disputes arising from verbal commitments.

Q2: What should the company do if a shareholder provides a guarantee for the company?

It should be assessed and cleaned up as soon as possible. Shareholders providing personal guarantees for the company's debts mean that the enterprise's risks are directly transferred to personal property. Once the company is unable to repay the debts, creditors can require shareholders to bear joint and several liabilities, and the shareholders' properties, deposits, etc. may be subject to investigation and seizure. The methods of cleaning up include: negotiating with creditors to replace the guarantees with assets, repaying part of the debts in exchange for the release, or providing new counter-guarantee arrangements. At the same time, it is necessary to check whether there are situations such as withdrawing investment funds and mixing shareholders' and company's assets, which will be subject to close scrutiny in disputes. It is recommended to sort out the guarantee list at the early stage of the crisis.

Q3: What should I do if multiple creditors sue me?

The key is to maintain a consistent stance and gain time. Firstly, it is necessary to verify the creditor's claim amount, litigation stage, and enforcement status for each case to avoid making inconsistent statements in different cases. Secondly, consider applying to the court for a deferral of trial or coordinated handling to facilitate centralized negotiations with creditors. Thirdly, assess whether it is necessary to resolve the issue once and for all through non-litigation methods such as debt restructuring and settlement. It should be noted that multiple lawsuits may lead to account freezing, which will directly affect operations and debt collection. Therefore, lifting the seizure and restoring operational capacity should be the primary goal. When necessary, it is advisable to entrust lawyers to manage external communications as soon as possible.

Q4: Should I file for bankruptcy?

We cannot make decisions based solely on intuition. Instead, we need to comprehensively evaluate three dimensions: the relationship between asset value and debt scale, whether the assets are insufficient to cover liabilities; the ability to continue operations, that is, whether the main business still has profitability; and the attitude of various creditors and the order of creditor repayment in bankruptcy proceedings. The judgment logic in practice is: if the enterprise still has the ability to continue operations and the asset value is significantly higher than the liabilities, the value of restructuring or settlement is usually higher than that of liquidation; if the assets are seriously insufficient to cover liabilities and there is no hope for continued operations, it is necessary to enter bankruptcy proceedings as soon as possible to avoid further asset loss. It should be noted that the order of repayment for ordinary creditors in bankruptcy proceedings is relatively late, so delaying the process may not be beneficial.

Q5: What should I do if the company fails to pay employees' salaries and social insurance premiums on time?

It should be dealt with as a priority and paid in full and on time. Arrears in wages and social insurance not only affect workers' rights, but also may face administrative penalties and additional costs, further exacerbating the enterprise's compliance risks. Practical suggestions are: when cash flow is tight, priority should be given to ensuring the payment of wages and social insurance. This can be alleviated by negotiating with employees for installment payments or applying for policy support. Once the bankruptcy procedure is initiated, the repayment of wage-related claims will enjoy a relatively favorable priority, but it still needs to be claimed through legal procedures. At the same time, attention should be paid to keeping payrolls, attendance records, and payment vouchers to avoid additional disputes over evidence in the future.Labor arbitration and work-related injury compensationThe column can provide supporting explanations on labor relations.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.