https://www.quora.com/For-Chinese-citizens-is-your-Government-all-that-bad-Would-you-prefer-it-over-one-such-as-the-United-States/answer/Truever-Zhang?ch=10&share=b533ab5b&srid=ukxqG9
https://www.quora.com/For-Chinese-citizens-is-your-Government-all-that-bad-Would-you-prefer-it-over-one-such-as-the-United-States/answer/Truever-Zhang?ch=10&share=b533ab5b&srid=ukxqG9
A contract between a borrower and lender doesn't typically mention the borrowers employees. How the borrower spends the money isn't part of the terms of the loan.
Maybe the problem is that a single individual is considered credit worth, while the employed masses are not. Perhaps China would be better under a German Mitterstand model or just go straight for democratically controlled workplaces with capital delegated out by a central committee.
But in this case, the bank did not ultimately have priority over the workers. The bureaucrats did the right thing, which is the best you can ask for in a bureaucratic model of governance.
This has nothing to do with the loan contract and everything to do with the court that auctioned the assets and the laws that govern how the proceeds from that sale are allocated. That the bank was given priority over the employees is a systematic flaw. That should have never occurred in the first place! The employees should have been paid their unpaid wages first, and the remnants would go to the bank.
This is pretty simple.