Currently, many courts across the country are handling cases related to "public interest liquidation," "conversion of enforcement into bankruptcy," and "elimination of zombie enterprises," most of which fall into the category of "assetless bankruptcies." Efficiently and promptly resolving such cases is not only a procedural requirement for bankruptcy administrators but also an essential goal to protect creditors' rights. Recently, Jiangsu Boomstar (Taizhou) Law Office efficiently processed a public interest bankruptcy case, fulfilling its duties as an administrator while minimizing bankruptcy costs and safeguarding creditors' legal rights to the greatest extent.
On November 11, 2024, the Jingjiang People's Court ruled to accept a bankruptcy liquidation case involving a labor service company in Jingjiang. In accordance with the court's rapid bankruptcy trial mechanism, the court decided to apply a simplified procedure for expedited review. On November 17, 2024, through a public lottery system, the court appointed the Taizhou Branch as the administrator of the case.
Upon being appointed, the Taizhou Branch immediately commenced preparatory work. On the same day, it swiftly established a liquidation team, formulated administrator work protocols, engraved administrator seals, and clearly outlined the tasks and deadlines for each stage. The following day, the office initiated financial takeovers and asset investigations. By conducting on-site visits to the company's registered address, retrieving corporate registration records, and checking for company assets, it comprehensively assessed the company's operational and financial status. Investigations revealed that the debtor company had no premises, no employees, and was unable to contact its legal representative, rendering asset takeover infeasible. This situation typified a "three-no bankruptcy enterprise"—one with no assets, no personnel, and no financial records.
Simultaneously, the office identified all creditors and promptly initiated debt claim filings and verifications. On the day after the submission deadline, all creditor claim reviews were completed.
On December 23, 2024, the first creditors' meeting was held in written form, during which all creditors unanimously acknowledged the confirmed claims without objections. On December 26, 2024, the administrator submitted an application to the court for confirmation of the undisputed claims.
As the case neared completion, on December 27, 2024, after thorough investigation, the administrator determined that the bankrupt company’s assets were insufficient to cover its due debts, and there was no possibility of restructuring or settlement. Meeting the conditions for bankruptcy declaration, the administrator applied to the court for the declaration of bankruptcy and termination of the bankruptcy proceedings for the labor service company. Upon review, the court confirmed the situation and officially ruled to declare the company bankrupt and terminate the bankruptcy process.
Within 40 days, the public interest bankruptcy case was successfully concluded. While safeguarding creditors' legitimate rights, our office ensured procedural compliance, strictly controlled key procedural milestones, shortened case duration, reduced bankruptcy costs, and comprehensively fulfilled its duties as the administrator in accordance with the law. The case achieved favorable results, aligning with judicial expectations and contributing valuable insights into the orderly and cost-effective exit of "assetless bankrupt enterprises" and "zombie enterprises" from the market.
Lead Attorney
Xu Wei
With a bachelor's degree in law, Xu Wei is a full-time lawyer at Jiangsu Boomstar (Taizhou) Law Office. He specializes in family law, criminal defense, and civil-commercial litigation. He currently serves as a public lecturer for Jiangsu Province’s "Double Protection" classroom initiative and as a volunteer for the "Yi Xin Wei Gong" program at the Taizhou High-Tech Zone People's Procuratorate.
Xu Wei has years of experience working at grassroots procuratorates, having served in key departments such as anti-corruption and public prosecution. He has participated in the review and prosecution of numerous major criminal cases, gaining extensive litigation skills and case-handling experience. He has received multiple accolades for outstanding performance and possesses a solid legal foundation and rich practical experience in handling complex cases.