1. The applicable subject is enterprise legal person;
2. The applicable situation is that the enterprise is unable to pay off due debts, and the assets are not enough to pay off all debts, or the enterprise is obviously lack of liquidity.
[Legal basis] According to Article 2 of the Enterprise Bankruptcy Law, if an enterprise as a legal person is unable to pay off its debts as they fall due, and its assets are insufficient to pay off all its debts or are obviously lacking in solvency, its debts shall be liquidated in accordance with the provisions of this Law.
An enterprise as a legal person may reorganize in accordance with the provisions of this Law if it is in any of the circumstances specified in the preceding paragraph or is likely to lose its ability to pay debts.
