The Shanghai Bankruptcy Court and the People's Court of Pudong New Area in Shanghai recently released its annual model cases for bankruptcy trials for 2024-2025 and 2025, respectively. Three cases where JunHe acted as the administrator were selected.

Shanghai Bankruptcy Court's 2024-2025 Annual Model Cases for Bankruptcy Trials

Reorganization Connects Securities Regulation to Protect Shareholder Rights and Helps Delisted Companies Rebirth - Bankruptcy Liquidation to Reorganization Case of Xinjiang La Mou Company Clothing Co., Ltd. (anonymized case name)

Lead Partners: LI, Chenghao, WU, Lei, ZHAO, Min, LIU, Zhengdong and DONG, Ming and Advisors WU, Ling and LIU, Xiaosen

Main Partner: LI, Chenghao

Xinjiang La Mou Company Clothing (La Company) was once the first clothing enterprise in China to be listed in both A+H shares. Due to its strategic misfocus, rapid expansion and changes in the industry environment, the company suffered continuous losses and its A-shares were delisted in May 2022. Its H-shares were cancelled in November 2024.

In February 2023, the Shanghai Third Intermediate Court ruled to accept the bankruptcy liquidation case of La Company; in September of the same year, it ruled to enter the reorganization process. In May 2024, the court appointed JunHe as the administrator. The JunHe team completed tasks such as the creditor review, the asset evaluation, investor recruitment and the drafting of the reorganization plan. Despite the delisting of the H-shares, the team successfully obtained a waiver letter from the Hong Kong Securities and Futures Commission before the shareholder meeting, which became an unconditional consent letter.

In May 2025, the Shanghai Third Intermediate Court approved La Company's reorganization plan, officially entering the execution stage. This was the first successful reorganization case of an A+H delisted company in the country, providing a reference for resolving debts and revitalizing the assets of delisted companies.

Cross-border Bankruptcy Judicial Assistance for Mainland and Hong Kong Associated Enterprises - Bankruptcy Liquidation Case of Shanghai Hao Mou Company Water Development Technology Company (anonymized case name)

Lead Partners: LIU, Zhengdong, WU, Lei, ZHAO, Min, LI, Chenghao and DONG, Ming and Advisors WU, Ling and LIU, Xiaosen

Main Advisor: WU, Ling

Hong Kong Hao Mou International Group Company (Hong Kong Hao Company) invested in establishing Shanghai Hao Company Water Development Technology Company (Shanghai Hao Company) in Shanghai. In March 2021, the Hong Kong High Court ordered the liquidation of Hong Kong Hao Company and appointed a liquidator. In March 2023, the Shanghai Third Intermediate Court recognized the Hong Kong liquidation process and the liquidator's identity, authorizing them to perform duties in the mainland.

In August 2023, as Shanghai Hao Company also entered bankruptcy proceedings, the Shanghai Third Intermediate Court elevated jurisdiction over the case and appointed JunHe and others as joint administrators. During the trial, the administrator team handed over part of the mainland financial records to the Hong Kong liquidator, assisted in retrieving bank transactions and other evidence, and provided multiple conveniences for the liquidator's asset investigation. The court set up an online hearing platform for cross-border cooperation between the administrators, ensuring compliant and orderly cross-border information transmission.

Through the joint efforts of the administrators from both regions, the bankruptcy liquidation case of Shanghai Hao Company managed to take over bankruptcy assets worth RMB 10.3528 million and the procedure was concluded in January 2026. This was a typical example of cross-border bankruptcy judicial assistance for associated enterprises in mainland China and Hong Kong and provided beneficial practices for cross-border bankruptcy collaboration.

Shanghai Pudong New Area People's Court Bankruptcy Trial Model Cases (2025)

D Real Estate Company Reorganization Case - Government and Court Collaboration to Solve Blockages and Difficulties, Introducing Beneficial Debt to Achieve Successful Continuation and Smooth Delivery of Housing Projects

Lead Partner: LIU, Zhengdong

Main Advisor: LIU, Xin and Partner LI, Chenghao

D Real Estate Company was established in 1995. A residential project developed by the company faced two stoppages due to a broken capital chain in 2022, with nearly 300 pre-sold residential units unable to be delivered on time, which caused social stability issues.

On February 28, 2024, upon application by the creditors, the Pudong New Area People's Court ruled to accept the bankruptcy reorganization application of D Real Estate Company and appointed JunHe as the reorganization administrator. JunHe formed a professional team of lawyers specializing in bankruptcy and real estate, advanced the reorganization process and ensured the continuation and delivery of housing. Within forty days of entering the reorganization process, JunHe secured RMB 130 million in continuation funds through the emergency borrowing of beneficial debt, which provided financial assurance for the rapid resumption of the project. JunHe publicly selected reorganization investors and promoted the negotiation, signing and drafting of the reorganization investment agreement and plan. We successfully introduced RMB 600 million in beneficial debt investment,  ensuring the smooth continuation, delivery and certification of the project.

The reorganization plan draft was passed with majority votes by each voting group of investors and creditors.  On October 24, 2024 the Pudong New Area People's Court approved the reorganization plan of D Real Estate Company and terminated the reorganization process. In March 2025, the reorganization project was completed and delivered on time. In October 2025, the initial registration of real estate was successfully completed and D Real Estate Company obtained a real estate certificate (big property certificate). In May 2026, homebuyers were also able to obtain a real estate certificate (small property certificate). JunHe's work in this case was highly recognized by the court, the creditors and the other stakeholders.

The selection of these three cases recognizes the value of individual cases in judicial practice and publicly affirms the professional depth and strength of JunHe's bankruptcy reorganization team. This achievement is based on JunHe's capabilities as a law firm included in the First-Level Bankruptcy Administrator List compiled by the Shanghai High People's Court. We benefit from the seamless collaboration and professional service standards of our teams in Shanghai, Beijing, Guangzhou and Shenzhen. Whether through continuous recognition by the Chambers list or multiple recommendations by The Legal 500, JunHe's mastery of complex bankruptcy matters is evident. We are committed to using our professional determination to weave new life into every stalled expectation, guiding more enterprises to achieve rebirth.