Hylands' Case Honored on the List of Deals of the Year 2021 by China Business Law Journal

Case Description

As ruled by the Supreme People's Court, the bond dispute case of Tahone Capital v. Shaoxing Zhongfu and Others was the first time confirmed the status of trustee as a subject of litigation in non-standard corporate bonds. This case has filled the gap in the law and precedents in this area, providing theoretical and practical supports for the multiple ways of exercising the rights of bondholders and playing a guiding and exemplary role. Not long after the issuance of the ruling, in July 2020, the Supreme People's Court issued the Minutes of the National Seminar on Hearing Bond Dispute Cases in Courts, which established the subject matter of litigation on behalf of the bond trustee. Meanwhile, the complexity of this case lied in the fact that nine affiliated companies, including the defendant Shaoxing Zhongfu and Jingong Group, had entered the bankruptcy restructuring process together during the trial of the case, and the qualification of Tahone Capital as a representative litigant was closely related to the exercise of the rights of the bondholders as creditors, and it was necessary to balance the substantive rights and interests of the bondholders as actual creditors in the bankruptcy restructuring process while resolving Tahone Capital's rights of action as a trustee. This was both the success and the difficulty of this case. 

Based on own experience in handling cases, extensive theoretical knowledge and powerful communication skills, Yu XU's team has successfully resolved the issue of subject matter eligibility for representative litigation while fully balancing the responsibilities and relationships between Tahone Capital and the bondholders, and has incorporated views consistent with the overall thinking and strategy into the details of the case, thereby assisting Tahone Capital in resolving the fundamental issues and defending its ultimate interests in an all-round manner.