Liquidation to Settlement, Completion of Settlement in Ten Days for a "Three-No-Case", with Creditors Receiving a High Percentage of Settlement

On January 6, 2022, the Beijing No. 1 Intermediate People's Court ruled to approve the Settlement Agreement of Beijing Zhongyang Jingkai International Enterprise Management Co., Ltd. and terminate the settlement process, which was only 10 days from the time the court accepted the settlement application of the case. Subsequently, on January 7, 2022, in just one day, the Administrator completed the execution of the settlement plan under the settlement agreement, with creditors receiving a high percentage payout of 73.77%. 

On November 17, 2020, the court ruled to accept the case of bankruptcy and liquidation of Beijing Zhongyang Jingkai International Enterprise Management Co., Ltd. and appointed Hylands Law Firm as the administrator of the case. Upon preliminary investigation by the administrator, there were no valid assets under the name of the debtor for disposal. If no valid property could be identified, the settlement rate of such "three-no-enterprise" claims would most likely be zero, and the legitimate rights and interests of creditors could not be effectively protected. 

Hylands, as the administrator, under the supervision and guidance of the court, has actively investigated deeply into the clues of the debtor's properties from different perspectives through various approaches, and has finally discovered possible paths to recover the debtor's properties through unremitting efforts. Upon reporting to the creditors' meeting in accordance with the law, Hylands has taken timely measures to strive for the recovery of corresponding assets so as to improve the payout rate of creditors. In the process of property recovery, the judges of the Bankruptcy Court of Beijing No. 1 Intermediate People' s Court have provided substantial support and timely guidance, which has greatly improved the efficiency of the administrator. 

Finally, under the supervision and guidance of the court and with the promotion of the administrator, the debtors, settlement contributors and creditors have finally reached a settlement intention through arduous negotiations and applied to the court for bankruptcy settlement on the basis of the settlement agreement prepared by the administrator. It has taken only 11 days since the court decided to accept the settlement to fulfill the liquidation obligation to the creditors, and the payout rate of creditors has increased from 0 to 73.77% for the three-no-cases. On one hand, this is the outcome of the initiative and diligence of the administrator under the support and guidance of the court, and on the other hand, it has also fully reflected the high-efficiency advantage of the bankruptcy settlement procedure in resolving the enterprise debt crisis.