On 28 Apr. 2021, China’s Supreme People's Court (SPC) released ten typical bankruptcy cases, which include the following types:
- Maintain the going-concern ability of the enterprise. By selling the operating assets as a whole, selling the asset portfolio, and appropriately ruling the conversion of bankruptcy liquidation to reorganization, the court tries its best to realize the continuous business of the enterprise. The cases of this type include the bankruptcy reorganization of Chongqing Huayuan Natural Gas Co., Ltd.( 重庆市华源天然气有限责任公司破产重整案), the bankruptcy liquidation of Jack Walker (Shanghai) Garments Co., Ltd. (杰克沃克(上海)服饰有限公司破产清算案) and the conversion of bankruptcy liquidation to reorganization of Chongqing Haihong Garments Co., Ltd. (重庆海虹服饰有限公司破产清算转重整案).
- Protect the creditor's right to decide on the disposal of major property and strengthen the creditor's participation in reorganization and other proceedings. The cases of this type include the substantive merger and reorganization of China Aviation Gas Turbine Co., Ltd. and CAGT Engineering (Beijing) Co., Ltd. (中航世新燃气轮机股份有限公司、中航世新安装工程(北京)有限公司实质合并重整案) and the bankruptcy reorganization of Shanghai Xiangfa Dangerous Goods Shipping Storage, Ltd. (上海祥发危险品船务储运有限公司重整案)
- Respect the views of the creditor and guarantee the creditor’s rights to recommend and replace the administrator. The cases of this type include the bankruptcy reorganization of Beijing Lianlu Technology Group Co., Ltd.（北京联绿技术集团有限公司等两公司重整案, the bankruptcy reorganization of Guangzhou Gronus Bicycle Fashion Sports Co., Ltd. (广州凯路仕自行车运动时尚产业股份有限公司重整案), and the bankruptcy liquidation of Shanghai Zhaolong Real Estate Co., Ltd. (上海兆隆置业有限公司破产清算案).
- Apply the new voting mechanism on the draft reorganization plan and merely allow creditors whose interests are adjusted or affected to participate in the voting. The cases of this type include the bankruptcy reorganization of Beijing Zhongdian Huatong Information Technology Co., Ltd. (北京中电华通信息科技有限公司破产重整案) and the bankruptcy reorganization of Hangzhou Xiaoshan Chaoyang Color Printing Packaging Co., Ltd. (杭州萧山朝阳彩印包装有限公司重整案).
Cover Photo by Patrick Xu (https://unsplash.com/@patrickxt) on Unsplash
Contributors: CJO Staff Contributors Team