The bankruptcy reorganization project of Jiangsu Hongmingda Textile Company is a bankruptcy reorganization project of Yinding Asset to extract the core value of assets and promote the integration of production and investment. The company conducted in-depth due diligence on the textile industry, extracted pollutant discharge permits as the core value, initiated a transition from execution auctions to bankruptcy auctions, coordinated asset disposal work with joint managers, combined production and investment to provide expenses and re employment for laid-off workers, properly resolved group risks, and successfully retained pollutant discharge permits. Through value mining, production equipment and ordinary factories that were originally used for scrap metal disposal have been transformed into assets that continue to operate and create value, successfully introducing industrial investors and achieving the reemployment of more than 300 employees, achieving a win-win situation between asset appreciation and social stability.
Project BackgroundDealing with difficulties: (1) The debtor has been entrenched in the local area for many years, with close relationships with the local judicial authorities and government, and strong confrontational tendencies; (2) There are difficult problems with unclear certificate numbers and boundaries in the land certificates of mortgaged assets, and there are a large number of illegal buildings that are connected to the certified assets and cannot be separated as a whole; (3) The assets are leased and used by a third party, and more than 300 local workers need to make a living. Judicial auctions can easily cause group conflicts. |
Disposal Process1. After careful consideration, it has been decided to apply for bankruptcy, with the bankruptcy administrator taking over the assets and promoting the bankruptcy auction of mortgaged assets; 2. Collect evidence of debtors' unauthorized collection of rent and other resistance to enforcement, hold debtors criminally responsible, and eliminate the impact of debtors' resistance to enforcement; 3. Introducing industrial investors to renew the pollution discharge permit of the factory area greatly maintains the value of machinery and equipment; 4. Patiently guide and explain to employees, provide living expenses to employees, organize employees to participate in the registration and employment of new enterprises, and eliminate the risk of group conflicts. |
Results And BenefitsThe debtor belongs to a group of companies with multiple external debts and assets, and a company in Yancheng has disposed of its mortgaged assets first. The disposal cycle of this asset package is 24 months, with an annualized rate of return of 25.75%. |
Core Business Capability1. Experienced in handling cases, eliminating the risk of debtors resisting execution through bankruptcy auctions and investigating the crime of refusal to execute; 2. Identify and enhance asset value, and achieve the improvement of machinery and equipment from liquidation value to use value by renewing pollution discharge permits; 3. Combining production and investment, introducing industrial investors, continuing to employ more than 300 employees, and eliminating the impact of group conflicts. |
