Shanghai Railway Court reported on the handling of bankruptcy cases, revitalized assets of 1.7 billion, cleared debt and debt of 24 billion over 5 years to save | Case | Court
As the first grassroots court in the city to establish a bankruptcy case trial court, the Shanghai Railway Transport Court held a press conference today to report on the handling of bankruptcy cases in the court from 2018 to 2022.
Over the past five years, the Shanghai Railway Court has accepted a total of 3186 bankruptcy, compulsory liquidation, and bankruptcy derivative litigation cases, and concluded 2610 cases. The overall number of cases settled in each year is increasing year by year; 645 enterprises with no operational value have orderly exited the market, with a cumulative amount of over 24 billion yuan in debt and debt cleared, approximately 1.7 billion yuan in assets revitalized, and more than 8500 employee creditors guaranteed. The quality and efficiency of bankruptcy trials have maintained a healthy operating trend.
The Shanghai Railway Court revealed that among the cases currently accepted, the majority of those applying for bankruptcy are small and micro enterprises, accounting for 87.7%. Taking into account the unique characteristics of small and micro enterprises, the court has optimized process management through digital empowerment, innovated mechanisms, and simplified trial methods, such as shortening declaration time, simplifying property disposal, and supervising managers to carry out multiple tasks simultaneously, in order to quickly clear out lifeless small and micro enterprises and reduce their bankruptcy trial costs. Among the 245 bankruptcy cases of private enterprises that have been settled, 45 cases that meet the applicable simplified review criteria have been quickly concluded, accounting for 18.4%. The average review time is 129 days, with the shortest being 53 days. This provides a guarantee for enterprises to quickly resolve their debts and achieve quick liquidation.
At the same time, the court has fully utilized its bankruptcy protection and rescue functions to rescue small and micro enterprises with operational value. In recent years, through restructuring and settlement, 16 small and micro enterprises have been able to survive. In the context of sharp contradictions in derivative bankruptcy litigation cases, the success rate of mediation in derivative litigation cases has reached 8.5%, which not only meets the diverse needs of parties to resolve disputes, but also promotes the rapid progress of bankruptcy proceedings.
For example, in the bankruptcy liquidation and reorganization case of a certain valve limited company in Shanghai, the company is a small and micro enterprise in the valve manufacturing industry. Due to the impact of the parent company's debt crisis, it entered the bankruptcy liquidation process. However, the company has multiple patents and other assets under its name, which have restructuring value and rescue potential, and has entered the reorganization process. In order to complete the transfer of assets and effectively solve the financing problems of investors, the Shanghai Railway Court actively coordinated and facilitated the general lifting of the company's land, real estate, and other properties, providing a good environment for its subsequent operations.
The Shanghai Railway Court stated that the next step is to actively explore how to further reduce the bankruptcy costs of small and micro enterprises, achieve a mechanism for rapid trial, and strive to solve the problems of small and micro enterprises lacking resources and professional knowledge in financing, business, and bankruptcy fields. It also actively helps small and micro enterprises with survival capabilities to reach feasible solutions for debt restructuring with their creditors, in order to achieve the goal of saving the enterprise as much as possible.
