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Tongfang has long regarded bankruptcy as a key practice area, striving to create high‑quality cases. With a focus on industrial development and regional revitalization, as well as on value discovery and the activation of underutilized assets, Tongfang—acting as a bankruptcy administrator—has handled 56 bankruptcy cases and 6 compulsory liquidation cases. Through these proceedings, the firm has helped resettle more than 10,000 employees, cleared over RMB 10 billion in debts, and revitalized several billion RMB worth of assets.

Tongfang has made active explorations and achieved excellent results in areas such as the rescue of high-quality resources, the harmless transfer of debts, the resettlement of employees of state-owned enterprises in Northeast China, the financing of beneficial debts, the recruitment and incentivization of investors, the design of investment structures, the establishment of debt‑to‑equity swap platforms, the formulation of trust‑based debt repayment plans, employee claim trusts, the handling of mass incidents, and communication with government authorities, realizing the orderly coexistence of legal value and social value.
 
The bankruptcy reorganization case of Zhongshun Automobile Holding Co., Ltd., led by Tongfang, was selected by the Supreme People’s Court as one of the “Top 10 National Model Bankruptcy Cases,” and it remains the only case from Northeast China ever to be included in this list.

Business Type / Service Content / Scope

Enterprise Distress Diagnosis and Reorganization Value Assessment

Conduct a comprehensive diagnosis of the enterprise’s debts, assets, and operating conditions, and evaluate its reorganization value and potential for regeneration.

Asset and Debt Structuring

Sort out and optimize asset and debt structures, design debt repayment plans, and promote debt settlement and asset revitalization.

Out-of-Court Restructuring and Pre-Reorganization Counseling

Assist enterprises and creditors in independent negotiations, conduct out-of-court restructuring, and facilitate the connection between pre-reorganization procedures and judicial reorganization.

Representation in Bankruptcy Reorganization and Liquidation Proceedings

Represent enterprises, creditors, or investors in bankruptcy reorganization, liquidation, and settlement proceedings to protect the rights and interests of all parties.

Creditor Rights Protection and Creditors’ Committee Services

Represent creditors in filing for bankruptcy, submitting claims, exercising voting rights, supervising proceedings, and preventing debt evasion.

Investor Introduction and Resource Integration

Introduce strategic investors through multiple channels, design investment structures, and facilitate resource integration, mergers, and acquisitions.

DIP Financing and Trust-Based Debt Repayment Scheme Design

Design innovative debt repayment methods such as debtor-in-possession financing and trust plans to improve recovery rates and control risks.

Legal Risk Assessment and Response for Enterprises and Controlling Persons

Identify administrative, criminal, and other legal risks faced by enterprises and their actual controllers, and formulate response strategies.

Employee Resettlement and Mass Incident Handling

Assist in formulating employee resettlement plans, handling labor disputes, and preventing and resolving social stability risks.

Government Investment Promotion Support and Risk Resolution Consulting

Provide governments with supporting plans for enterprise reorganization, policy recommendations, and investment promotion coordination to help remove obstacles to reorganization.

Representative Cases

Bankruptcy Reorganization of Zhongshun Automobile Holding Co., Ltd. (Selected by the Supreme People’s Court as one of the “Top 10 National Model Bankruptcy Cases”)

Reorganization of China Nonferrous (Shenyang) Metallurgical Machinery Co., Ltd. (A “dealing with zombie enterprises and resolving distress” project of the State-owned Assets Supervision and Administration Commission of the State Council)

Reorganization of Qingyuan Manchu Autonomous County Jinyulong Mining Co., Ltd. (Liaoning’s first reorganization case involving a mining enterprise)

Reorganization of Shenyang Xingchen Real Estate Development Co., Ltd. (A model case recognized by Liaoning Province for revitalizing existing stock and attracting new investment)

Bankruptcy Liquidation of Shenyang Mingjing Real Estate Co., Ltd.

Bankruptcy Liquidation of Shenyang Huachu Real Estate Co., Ltd.

Bankruptcy Liquidation of Shenyang Sanhua Dicastal Wheel Co., Ltd.

Bankruptcy Liquidation of Shenyang Jinmeida Ceramics Co., Ltd.

Bankruptcy Reorganization of Fushun Cement Co., Ltd.

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