LIQUIDATION & BANKRUPTCY

While China attracts large amounts of foreign direct investment (FDI), not all of these projects are successful or sustainable. Many foreign companies have recently been facing various economic, operational and social pressures (and sometimes political pressures including international sanctions) in maintaining their business in China. For some this pressure has become too much, leading to the decision, either voluntarily or involuntarily, to close their China entity. While the challenges of establishing a foreign-invested enterprise in China are well-known, what many investors are often surprised by is that legally closing and de-registering the company can be a much more complex and time-consuming process.

Our team of highly-qualified lawyers and consultants have extensive experience in providing legal advice and services to foreign companies looking to close their China operations, either voluntarily or involuntarily due to a bankruptcy situation. Our liquidation and bankruptcy services include advising on and handling the following:

• Voluntary and Compulsory Liquidations:
  • Shareholder Resolutions on Liquidation
  • Employee Layoffs and Termination Documents
  • Formation of Liquidation Committee
  • Serving as Member of Liquidation Committee
  • Liquidation Announcement Filing
  • Informing and Liaising with Creditors About Liquidation
  • Registering and Confirming Declared Debts
  • Preparation of Liquidation/Assets Disposal Plan
  • Settling Outstanding Taxes, Claims and Debts
  • Rectifying the Abnormal Status Imposed by Authorities
  • Distribution of Dividends to Company Shareholders
  • Liquidation Report Preparation
  • Deregistering at Relevant Authorities

• Bankruptcy Liquidations
  • Filing of Involuntary Bankruptcy Petition to the Court
  • Participating in Bankruptcy Proceedings
  • Handling Communication with Court Appointed Administrator
  • Creditor and Debtor Negotiations
  • Debt Collection
  • Reorganization and Restructuring