Recently, the bankruptcy administrator team of Ronly & Tenwen Partners efficiently converted a bankruptcy liquidation case designated by the Shanghai Third Intermediate People’s Court to be handled by the firm into a settlement procedure within a short period of time after efforts, which not only maximized the protection of the interests of creditors but also created the possibility for the debtor’s enterprise and shareholders to create success again. Therefore, this case become one worth studying and summarizing in handling bankruptcy of corporates without property, employee or accounting books.

Brief Introduction
      This was an enterprise engaged in the research, development and production of technical products in the field of communications, with a registered capital of more than 50 million yuan. Due to the large initial investment and the long investment cycle, and as the shareholders lacked strong financial strength and timely external investment, the enterprise has entered the dilemma that its technology and products were unable to achieve mass produce and occupation of the market. Finally, it entered a state of shutdown in 2018.
       The applicants for the bankruptcy of the debtor were employees who were owed wages and income, and still failed to had their claims fulfilled for nearly 5 years after arbitration and enforcement.


Handling of the Case  
      When the administrator team received this case, it was near the eve of the Spring Festival in 2023. The first creditor meeting was near, and there was a long Spring Festival holiday in the middle. Therefore, all external work was affected. In addition, most of the debtor’s shareholders, the legal representative, and creditors were in other provinces and cities. The administrator team faced tight time and many tasks. Nonetheless, it still advanced various tasks efficiently and orderly, and was not sloppy in any work because of tight time. During the investigation of creditor’s rights, a lot of detailed and thoughtful research and analysis were made regarding the total number of creditor’s rights, the accuracy and nature of each creditor’s right. After confirmation in accordance with the law, the amount of creditor’s rights was expanded from more than 1 million yuan known at the time of receiving the case to more than 60 million yuan at the time of declaration, and the final settlement amount was more than 40 million yuan. In the investigation of the debtor’s enterprise and the interview with the legal representative, we reasoned with them sincerely. On the one hand, we maintained seriousness and rigidness of the law, and on the other hand, we released the warmth and goodwill of the law as much as possible. In many rounds of communications, we carefully grasped the objective reasons why the enterprise had entered a difficult situation, sincerely cared about the actual situation and true thoughts of the legal representative, and keenly captured the legal representative’s own desire to repay the debt, the possibility of repayment of the debt and the ambition to make a comeback. To this end, the administrator encouraged and helped the legal representative to actively design a plan, and encouraged him to exchange an active and flexible debt repayment plan for time and space for future career development. At the same time, the administrator also repeatedly and patiently communicated with each creditor and creditor company, so as to obtain their agreement to the settlement plan while meeting their own needs. The settlement plan drafted by the administrator team to assist the bankrupt company was passed by a high vote in the third creditors’ meeting. In the whole process, the administrator team paid great attention to taking the initiative to obtain the guidance of the court, and maintained the resonance of the court’s trial, which achieved satisfactory results.

Typical Significance
      Adhere to the handling concept of “efficiency is quality”, the bankruptcy administrator always operated in a highly efficient manner. It is common for bankruptcy cases to have a long cycle and slow efficiency. The improvement of the handling efficiency, acceleration of the healthy and orderly flow of market entities, and quick clearing have been an important topic for the administrators. We believe that high efficiency itself is a kind of case-handling quality. It took less than half a year from the receipt to conclusion of the case, and all the work was successfully completed. Every task was done neatly without procrastination or prevarication, which is a kind of responsibility and contains quality assurance.

      While pursuing the handling efficiency, we always ensure that the rights and claims of each party are treated fairly. With the deepening of investigation, the number and base of creditors were expanding, and the number of creditor’s rights may also be reduced due to various reasons such as interest-bearing days and legal regulations. These tedious tasks seem to take more time and energy, but administrators never merely seek the speed over accuracy, because efficiency is meaningless without quality.

      While protecting the interests of creditors, we created an opportunity to protect the rebirth of a market entity. In the conversion of bankruptcy to settlement proceedings, this case not only maximizes the protection of the rights and interests of creditors, but also creates opportunities and possibilities for the protection of the market entity. In addition, it adds favorable factors to social harmony and economic development, and further demonstrates the social value of the work of the bankruptcy administrator.