Last year, the bankruptcy trial in Jiangsu played a significant role and function in providing services and ensuring the optimization of the business environment, according to a briefing on the bankruptcy trial and press conference on typical cases in 2022 held on Tuesday morning.
In 2022, the province’s courts at all levels reported a year-on-year increase of 565.73% in new cases of compulsory liquidation. The courts used bankruptcy procedures to release 387.343 billion yuan of precipitated assets.
These two data can also reflect the significance of bankruptcy trials, which lie in quickly cleaning up zombie enterprises and resolving overcapacity. On the other hand, they also lie in rescuing enterprises with potential for regeneration and realizing the revitalization and re-flow of economic resources.
Jiangsu has actively explored the public-good liquidation exit mechanism for enterprises with abnormal operations, and took the lead in solving exit problems such as shell companies and disconnected companies so as to have achieved the first data of nearly 6-fold growth, fully stimulating market vitality.
In the top ten typical cases released on Tuesday, more than half of them are related to the rebirth of bankrupt enterprises, benefiting from the trial mechanism to lift difficult enterprises out of difficulties.
“For enterprises in trouble, bankruptcy is absolutely not a solution. For such enterprises with salvage value, we have actively introduced a series of systems such as restructuring and reconciliation. During the restructuring process, we have helped enterprises coordinate the introduction of some high-quality investors and new industries, enabling them to regenerate and achieve industrial transformation and upgrading,” said Zhou Yaguan, Vice President of the Second Civil Trial Division of the Provincial Court.
In the next step, the courts at all levels in Jiangsu will strengthen the use of the complex and simple separation of bankruptcy cases, rapid trial mechanism, and comprehensive use of reorganization, reconciliation, and pre reorganization, to help enterprises to regenerate, optimize the business environment, and promote high-quality economic development.
