On December 24, 2018, the Beijing No. 1 Intermediate People’s Court (“Beijing No.1 Intermediate Court”) ruled to approve the plan of the reorganization of Medfavour (Beijing) Medical Co., Ltd. (“Medfavour”). In this case, JunHe was appointed the administrator of Medfavour. This approval meant that the most crucial phase of Medfavour’s reorganization was successfully completed and the implementation of the plan for reorganization could begin.
The special features of the Medfavour case are as follows: the value of Medfavour’s reorganization was reflected in the registration certificates and production licenses held by Medfavour for three types of medical devices. However, as Medfavour had suspended its production for almost two years, these registration certificates and production licenses could not be renewed if production could not be recovered, which would result in a loss of the value of the reorganization.
The Beijing No. 1 Intermediate Court appointed JunHe the administrator of Medfavour on August 15, 2018. On September 11, 2018, the administrator elected the investors by an election competition, and subsequently completed the preparation of the draft reorganization plan before the first meeting of creditors, that was to be held on September 21, 2018. The draft reorganization plan was then put to vote at the first meeting of the creditors. Thanks to the efficient work and efforts by the administrator, the investors were confident of their investment in Medfavour. As a result, the preparatory work for restoring production was commenced prior to the court’s approval of the plan for the reorganization, enabling Medfavour to rapidly resume its production and operations.
The professionalism, diligence and efficient teamwork of JunHe’s lawyers has been well recognized by the employees, creditors and investors involved in the case and highly praised by Beijing’s No. 1 Intermediate Court, enhancing JunHe’s reputation. This case once again demonstrates the outstanding professionalism of JunHe’s lawyers and their willingness to undertake their social responsibilities.