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shanghai bankruptcy court briefs on case handling datareleases typical cases
[2020-03-31]

 

 

On March 31, 2020, the Shanghai Bankruptcy Court held a press conference, on which the case handling data of the court in the year since its establishment was briefed and typical cases were released. The press conference was livestreamed and participated by more than 20 reporters.

It was briefed on the press conference that the Shanghai Bankruptcy Court was established on February 1, 2019 and has been fulfilling tasks and giving play to the function and value of bankruptcy system towards the goal of promoting the creation of a law-based business environment over the year.

As of February 2020, the Shanghai Bankruptcy Court has accepted a total of 1,317 cases concerning bankruptcy, compulsory liquidation, and derivative litigation, etc. Specifically, 1,250 are bankruptcy and compulsory liquidation cases. In 542 cases, bankruptcy proceedings and compulsory liquidation proceedings were started. The specific data are as follows:

I. Applicant Type

Among the bankruptcy cases, 78.4% of the proceedings are initiated by creditors. In compulsory liquidation cases, 95.6% of the proceedings are started by shareholders.

II. Case Type

Among the bankruptcy cases, 98.6% are liquidation cases, 1.2% are reorganization cases, and 0.2% are reconciliation cases.

III. Type of Enterprises Subject to Bankruptcy Filing

1. Enterprise type: Limited liability companies account for 96.5%, joint stock companies account for 1.8%, collective-owned enterprises account for 1.3%, State-owned enterprises account for 0.2%, and partnership enterprises account for 0.2%.

2. Investment type: Domestic-funded enterprises account for 93.9%, Hong Kong, Macao and Taiwan-invested enterprises account for 2.4%, and foreign-invested enterprises account for 3.7%.

IV. Industry Distribution of Enterprises Subject to Bankruptcy Filing

The enterprises subject to bankruptcy filing involve 34 divisions in 15 classes. The top industries are: wholesale 19.8%, business services 17.2%, software and information technology services 7%, transportation 5.4%, real estate 4.6%, and catering industry 4.1%. Others include equipment manufacturing, retail, construction, culture, sports and entertainment industries.

V. Geographical Distribution of Enterprises Subject to Bankruptcy Filing

The enterprises subject to bankruptcy filing are mainly distributed in non-central urban areas of this city, mostly in Pudong, Jiading, Songjiang, and Fengxian, accounting for 32.7%, 9%, 7.2%, and 7.2% respectively, 56.1% in total; in central urban areas, mostly in Jingan, Hongkou, Putuo and Changning, totaling 18.1%.

VI. Size of Enterprises Subject to Bankruptcy Filing

Those with a registered capital of less than RMB 100,000 (inclusive) account for 2.2%;

Those with a registered capital of RMB 100,000 - 500,000 (inclusive) account for 12.2%;

Those with a registered capital of RMB 500,000 - 1 million (inclusive) account for 13.7%;

Those with a registered capital of RMB 1 million - 5 million (inclusive) account for 23.3%;

Those with a registered capital of RMB 5 - 10 million (inclusive) account for 14.2%;

Those with a registered capital of RMB 10 - 50 million (inclusive) account for 20.4%;

Those with a registered capital of RMB 50 million - 100 million (inclusive) account for 6.6%;

Those with a registered capital of more than RMB 100 million (inclusive) account for 7.4%.

VII. Operating Status of Enterprises Subject to Bankruptcy Filing

30.4% of the enterprises subject to bankruptcy filing are in the state of being revoked but not cancelled; 40.6% are included in the abnormal business directory.

VIII. Enterprises Subject to Bankruptcy Filing Involving Enforcement

69.9% of the enterprises subject to bankruptcy filing are the target of enforcement in enforcement cases; final rulings are rendered in 92.9% of the enforcement cases.

IX. Application of Summary Procedures

Summary procedures are applied to 50% of the bankruptcy cases closed with an average duration of 99.5 days.

X. Intermediaries

Among the 528 cases in which intermediaries are designated as managers or designated to form liquidation groups, 99.4% intermediaries are designated by random means; 0.6% are designated by competitive invitation; 63.4% are law firms, 25% are accounting firms, and 11.6% are clearing houses; 25.4% are first-level managers and 74.6% are second-level managers.

XI. Form of Creditors' Meeting

In October 2019, the creditor meeting system was launched and put into use, and the corresponding Online Creditor Meeting Rules (Trial) and other supporting rules were formulated. Since the system was put into use in February 2020, 102 online creditor meetings have been held, accounting for 76.1% of all creditor meetings. The number of creditors attending the meetings reached 1,763 with an attendance rate of 87%. Many of them are far away in Xinjiang, Qinghai, Gansu, Sichuan and other places. The system has provided convenience for the parties and reduced the cost of procedures.

Typical Cases.docx

 


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The English version of this article, which is translated from the Chinese version by CTPC, is for reference only and shall be subject to the corresponding contents on the Chinese webpage.
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