Non-performing Asset Disposal
Non-performing Asset Disposal
Non-performing asset (NPA) disposal is a traditional legal service area of Hylands. In recent years, with growing client demand, Hylands has achieved remarkable results in this field. Legal services for NPA disposal play a critical role in multiple aspects, including NPA risk identification, value assessment, compliant disposal, cross-border coordinated disposal, debt restructuring and bankruptcy liquidation, as well as asset management and operation post-disposal. The client groups served by Hylands’ NPA disposal practice primarily include financial institutions such as banks, insurance companies, securities firms, trust companies, public funds, and licensed NPA disposal and management companies. It also caters to private equity funds, domestic and foreign institutions, or individual investors that either participate in NPA disposal or have their own NPA disposal needs. Leveraging professional legal services and in-depth government and industry resources, Hylands offers clients multi-channel legal support. Amid the current dual challenges of economic downturn and overcapacity reduction, the volume of NPA disposal business will continue to rise. The professional lawyers in Hylands’ NPA disposal team consistently strive to provide detailed, thoughtful, and comprehensive legal services to diverse client groups through professional, refined and standardized practices.
Services
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- NPA Disposal Due Diligence and Assessment Business
- The due diligence and evaluation service for NPA disposal primarily involves conducting a comprehensive review and preliminary risk assessment of NPAs, including investigating the legal status of NPAs (such as ownership and mortgages) and identifying, categorizing, and evaluating potential legal risks (such as lawsuits and debt disputes).
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- NPA Disposal Plan Design
- The plan design service for NPA disposal primarily involves, based on preliminary due diligence results of NPAs, assisting all parties in designing acquisition and disposal plans or formulating bankruptcy restructuring plans. It also includes drafting or reviewing contracts related to acquisition and disposal plans to ensure clear terms and legal compliance, as well as assisting clients in negotiating with creditors, representing clients in bankruptcy proceedings, and handling liquidation matters.
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- NPA Disposal Asset Securitization Business
- The asset securitization service for NPA disposal primarily involves assisting clients in designing NPA securitization plans, including developing the legal framework for NPA securitization to ensure compliance with laws and regulations, as well as drafting and reviewing documents related to NPA securitization.
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- NPA Disposal Litigation and Arbitration Business
- The litigation and arbitration service for NPA disposal mainly entails, in accordance with the confirmed NPA disposal plan, recovering relevant claims through litigation or arbitration. It also involves applying for preservation measures for the involved assets to prevent asset transfer.
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- NPA Disposal Compliance and Regulatory Business
- The compliance and supervision service for NPA disposal mainly involves conducting compliance reviews and supervision communications for NPA disposal, including reviewing all NPA disposal documents and processes to ensure the NPA business adheres to laws and regulations, as well as assisting the disposal party in communicating with regulatory authorities to maintain compliance.
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- NPA Disposal Cross-border Business
- With the development of globalization, a large number of international NPAs have emerged, and NPA disposal is no longer limited to within China. Hylands has joined global lawyer organizations, enabling it to represent clients in handling NPA matters involving the laws of multiple countries, participate in international arbitration on clients’ behalf, and entrust overseas lawyers to handle NPA-related litigation and preservation services for clients.