Just Liquidation Group: Has filed an application for bankruptcy reorganization with the Dongguan Intermediate People's Court

Just Liquidation Group: Has filed an application for bankruptcy reorganization with the Dongguan Intermediate People's Court

On August 18, the Just Liquidation Group issued the "Notice on the Next Steps of the Self-liquidation of Just Electronic Technology (Dongguan) Co., Ltd.", mentioning the reasons why the company applied for bankruptcy reorganization.

 

On August 18, the Just Liquidation Group issued the "Notice on the Next Steps of the Self-liquidation of Just Electronic Technology (Dongguan) Co., Ltd.", mentioning the reasons why the company applied for bankruptcy reorganization.

 

The full text of the report is as follows:

 

Dear creditors of Just Company:

 

In combination with the actual progress of Just Company's self-liquidation, the liquidation group has filed a bankruptcy reorganization application with the Dongguan Intermediate People's Court in early August in accordance with Article 237 of the Company Law of the People's Republic of China and Articles 2 and 70 of the Enterprise Bankruptcy Law of the People's Republic of China. At present, the online application for case filing review has been reviewed and approved, and the offline mailing materials are in the review process.

 

Question 1: Why did self-liquidation turn into bankruptcy reorganization?

 

Answer: Article 237 of the Company Law states that "After clearing the company's property, preparing the balance sheet and property list, if the liquidation group finds that the company's property is insufficient to repay the debts, it shall apply to the People's Court for bankruptcy liquidation in accordance with the law. After the People's Court accepts the bankruptcy application, the liquidation group shall transfer the liquidation affairs to the bankruptcy administrator designated by the People's Court."

 

Question 2: What are the advantages of bankruptcy reorganization procedures over self-liquidation?

 

1. Significantly improve the repayment ratio of creditors

 

Through reorganization, the repayment ratio of creditors can be improved. Compared with self-liquidation, creditors may receive a higher repayment amount. Bankruptcy reorganization restores the profitability of enterprises through debt restructuring, asset restructuring and other means, thereby increasing the repayment ratio of creditors.

 

2. More fully protect the interests of all creditors

 

In bankruptcy reorganization, creditors can participate more actively in the formulation of the reorganization plan, and the asset liquidation plan is more fair and transparent.

 

3. It is conducive to the survival and value protection of enterprises

 

Bankruptcy reorganization can retain the market resources and commercial value of enterprises, especially for those enterprises with special business resources or qualifications and licenses that are difficult to transfer. It helps to maintain the company's market position and brand value, while protecting the company's business relationships with customers, suppliers, etc.

 

4. It is more conducive to the introduction of restructuring investors

 

Bankruptcy restructuring is a quasi-judicial procedure. Compared with the self-liquidation procedure, it is conducive to quickly resolving the contradiction between creditor's rights and debts, and is more conducive to the introduction of restructuring investors and the protection of their rights and interests.

Question 3: What do the creditors of Jiast need to do now?

 

All creditors are requested to wait patiently for the next announcement document notification of the Dongguan Intermediate Court. If Jiast enters the bankruptcy restructuring procedure, it will continue in accordance with the relevant procedures. The bankruptcy administrator will perform his duties in accordance with the relevant laws and continue to promote matters related to the repayment of debts.

 

Liquidation Group of Jiast Electronic Technology (Dongguan) Co., Ltd.

 

August 18, 2024