Recently, the Longwan Court ruled to approve the Wenzhou Economic and Technological Development Zone New Century Petroleum Co., Ltd. (hereinafter referred to as: New Century Gas Station) reorganization plan . The reorganization investors paid 88.05 million yuan of investment funds according to the reorganization plan to repay debts, the rights and interests of investors were adjusted according to the reorganization plan and the change registration was smoothly handled, and the business affairs were transferred safely and smoothly. The New Century Gas Station, which was deeply trapped in the quagmire of debt, finally regained its vitality and set off again with light equipment.
New Century Gas Station was established in 1996. It is located on Airport Avenue. It is the earliest gas station in Longwan District. It has a high reputation in the local area. Due to poor management and involvement in large-scale guarantee , since 2013, gas stations have been sued by many creditors and entered the compulsory execution procedure. Since the compulsory execution procedure can only dispose of real estate under the name of the gas station and inventory of refined oil for debt repayment, the operating value of the gas station cannot be reflected, and the direct disposal of the property also involves issues such as oil safety and employee resettlement.
September 2019
The debtor applied for bankruptcy reorganization to Longwan Court. The court ruled to accept the case in accordance with the law, and the senior court president formed a collegial panel to hear the case, and the administrator was designated through bidding.
On December 11, 2019,
held the first creditors' meeting. The main content of the meeting reported the work report on the performance of the manager's duties, disclosed the main situation and assets of New Century Petroleum, and put forward a proposal on whether the contract management contract will continue to be performed.
On November 17, 2020,
held the second creditors' meeting. This conference mainly explains the reorganization recruitment situation and discusses the relevant reorganization plan, listens to the opinions of each creditor, timely discloses the overall situation and progress of the case to all creditors, and adjusts the reorganization plan based on the opinions of each creditor.
December 1, 2020
Longwan Court ruled to confirm the claims of six creditors including the Wenzhou Longwan District Taxation Bureau of the State Administration of Taxation, totaling more than 780 million yuan (including temporary claims of 524 million yuan).
On January 12, 2021,
held the third creditors' meeting, and voted to pass the "Draft Reorganization Plan" to clarify that the first distribution and repayment rate of ordinary debt is about 10.6%, and the investor's right is to obtain 100% equity of New Century Petroleum .
September 1, 2021
Longwan Court ruled to approve the reorganization plan (optimization draft) and terminate the reorganization procedure.
Important measures
First of all, ensuring the safety of gas stations is of great importance. On the day of the acceptance of the ruling in September 2019, Li Min, President of Longwan Court, led members of the collegial panel to go to the gas station to provide on-site guidance with the administrator, urged the administrator to do a good job in gas station safety management, check for facility safety hazards, and stabilize the mood of the employee team. During the entire reorganization period, no production safety accident occurred at the gas station.
Secondly, ensure that the gas station goes bankrupt and does not stop production
Due to the special nature of the gas station, if the business is stopped, its qualifications will not be retained and the reorganization value will be greatly depreciated. In order to increase the debt repayment rate and promote the successful reorganization of the gas station, the administrator publicly recruits contractors to continue operating to ensure that the gas station goes bankrupt and does not stop production. During the epidemic, the government departments required gas stations not to cut off supply of . The manager promptly introduced internal epidemic prevention systems to predict various emergencies, so as to ensure that gas stations remain operating normally during the most severe period of the epidemic, and to ensure that staff members are zero infections.
Third, to ensure the smooth adjustment of investors' rights and interests
The manager determined the reorganization investors through public recruitment and formulated the draft reorganization plan. It was found that the equity of the gas station was sealed by multiple courts due to the personal debt of shareholders and the was sealed by in the round of seizures, and the formulated reorganization plan involves the adjustment of investors' rights and interests.To this end, under the guidance of the court, the administrator conducted a comprehensive audit of the assets and liabilities of the gas station, conducted a full due diligence on whether the accounts receivable can be recovered, and evaluated the value of the equity. On the premise of improving relevant basic materials, Longwan Court actively connected with the various equity seizures and waiting for seizures courts, and obtained the recognition of the relevant courts. The equity was successfully unblocked and successfully changed and registered to the shareholders designated by the reorganizer investor, solving the problem of equity seizures during reorganization, and also accumulating experience in the handling of similar reorganization cases.
The case was reorganized successfully, which not only ensured the existence of the operating value of the gas station, but also resolved the backlog of execution cases and increased the debt repayment rate, achieved win-win results for all parties, and realized the value of the bankruptcy trial service business environment.
Material source: Longwan Court
