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.( 重慶市華源天然氣有限責任公司破產重整案), the bankruptcy liquidation of Jack Walker (Shanghai) Garments Co., Ltd. (杰克沃克(上海)服飾有限公司破產清算案) and the conversion of bankruptcy liquidation to reorganization of Chongqing Haihong Garments Co., Ltd. (重慶海虹服飾有限公司破產清算轉重整案).
- 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. (中航世新燃氣輪機股份有限公司、中航世新安裝工程(北京)有限公司實質合并重整案) and the bankruptcy reorganization of Shanghai Xiangfa Dangerous Goods Shipping Storage, Ltd. (上海祥發危險品船務儲運有限公司重整案)
- 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.（北京聯綠技術集團有限公司等兩公司重整案, the bankruptcy reorganization of Guangzhou Gronus Bicycle Fashion Sports Co., Ltd. (廣州凱路仕自行車運動時尚產業股份有限公司重整案), and the bankruptcy liquidation of Shanghai Zhaolong Real Estate Co., Ltd. (上海兆隆置業有限公司破產清算案).
- 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. (北京中電華通信息科技有限公司破產重整案) and the bankruptcy reorganization of Hangzhou Xiaoshan Chaoyang Color Printing Packaging Co., Ltd. (杭州蕭山朝陽彩印包裝有限公司重整案).
Cover Photo by Patrick Xu (https://unsplash.com/@patrickxt) on Unsplash
Contributors: CJO Staff Contributors Team
