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On June 23, 2026, the Shanghai Third Intermediate People’s Court (Shanghai Intellectual Property Court and Shanghai Railway Transportation Intermediate Court) held a press conference to release the White Paper on Bankruptcy Adjudication Work of Shanghai Bankruptcy Court (2024–2025) and announce the “2025 Representative Cases.” Twelve representative cases were selected and published. 

Two bankruptcy cases involving Shanghai Hui Ye Law Firm were selected as representative cases:  Preserving Vehicle License Quota Resources and Ride-Hailing Operating Permits to Revitalize an Automobile Leasing Enterprise-- the Case of Conversion from Enforcement Proceedings to Reorganization of an Automobile Leasing Company, in which Hui Ye acted as bankruptcy administrator; and Facilitating the Revival of a Third-Party Payment Enterprise through Coordinated Financial Regulation and Bankruptcy Proceedings-- the Case of Transition from Pre-Reorganization to Formal Reorganization of a Payment Company, in which Hui Ye acted as legal counsel to the debtor throughout the proceedings.

The selection of these two cases demonstrates Hui Ye’s comprehensive capabilities and extensive experience in bankruptcy practice, including acting as bankruptcy administrator and providing legal representation to debtors and other stakeholders throughout complex restructuring proceedings.

Case One: Hui Ye Acting as Bankruptcy Administrator | Conversion from Enforcement Proceedings to Reorganization of an Automobile Leasing Company

This case demonstrates the effective use of the conversion mechanism from enforcement proceedings to reorganization, identifying the restructuring value of a distressed enterprise, preserving scarce operational resources, and facilitating business recovery.

The automobile leasing company (the “Company”) was primarily engaged in automobile leasing services and held valuable ride-hailing operating permits and passenger vehicle license quota resources. Due to operational difficulties, the Company became subject to multiple enforcement proceedings. The Jing’an District People’s Court transferred the case for bankruptcy review. In December 2023, the Shanghai Third Intermediate People’s Court accepted the bankruptcy case and appointed Shanghai Hui Ye Law Firm as bankruptcy administrator.

Following its appointment, Hui Ye established an administrator team led by Senior Partner  Xuehong LUO, with Partners Xianwei ZHANG, Yu CHEN, Hui TIAN, and other lawyers serving as core members. Under the guidance of the Shanghai Third Intermediate People’s Court, the team diligently performed its statutory duties and conducted a comprehensive review of the Company’s assets, liabilities, and business operations. 

The investigation revealed that the Company’s core value primarily lay in its ride-hailing operating permits and passenger vehicle license quota resources. A liquidation proceeding would have significantly diminished the value of these scarce resources and resulted in a substantially lower recovery rate for ordinary unsecured creditors. 

Recognizing the Company’s restructuring potential, the administrator team developed a restructuring strategy focused on preserving valuable operational resources, introducing industrial investors, and revitalizing the Company’s business value. 

During the restructuring process, the administrator team actively coordinated communications and negotiations among creditors, the debtor, and potential investors. The team prepared the draft restructuring plan and submitted it to the Shanghai Third Intermediate People’s Court for approval.

After review, all creditor groups and the shareholder group voted in favor of the restructuring plan. The recovery rate for ordinary unsecured creditors was significantly higher than that under a simulated liquidation scenario, and the adjustment of shareholders’ rights and interests was considered fair and reasonable.

The Shanghai Third Intermediate People’s Court subsequently approved the restructuring plan and terminated the restructuring proceedings, enabling the Company to preserve its valuable operational resources and continue business operations.

Case Two: Hui Ye Acting as Legal Counsel to the Debtor | Transition from Pre-Reorganization to Formal Reorganization of a Payment Company

This case demonstrates how pre-reorganization and reorganization proceedings can help distressed enterprises overcome operational difficulties and achieve recovery. Hui Ye Senior Partner Songming WANG and Partner Wenying LIU acted as legal counsel to the debtor throughout the proceedings.

The payment company (the “Company”) held a payment business license issued by the People’s Bank of China and primarily provided payment services, including bank card acquiring and online payment services. The Company had established business operations and an extensive merchant and user base.

However, due to poor management, excessive debt burdens, and third-party guarantee obligations, the Company experienced severe liquidity difficulties and became unable to repay debts as they fell due. The Company also faced restrictions on expanding new business activities, risks of transaction system suspension, potential disruption to merchant settlements, and difficulties in paying wages and social security contributions for more than 200 employees.

Based on Hui Ye’s long-term understanding of the Company’s operations, the team identified substantial restructuring value. The Company had a sound organizational structure, sustainable business operations, historical annual transaction volumes exceeding RMB 1 trillion, strong profitability recovery potential, manageable contingent liabilities, and significant market value arising from its payment business license. 

To improve the feasibility of the restructuring and attract potential investors, Hui Ye developed a comprehensive restructuring strategy.

First, the team designed and implemented a compliant workforce restructuring and employee transition plan, successfully completing arrangements involving more than 200 employees without any labor disputes. At the same time, the Company retained its core operational team, enabling continued operations while maintaining market competitiveness and innovation capabilities.

Second, Hui Ye assisted the core operational team in identifying potential investors and promoting investment opportunities. Third, the team proactively negotiated with major creditors, analyzed the feasibility of restructuring and its advantages in maximizing creditor recovery, and obtained creditors’ understanding and support.

Based on these efforts, Hui Ye applied to the court for commencement of pre-reorganization proceedings. After the court accepted the application, Hui Ye continued to act as legal counsel to the debtor and worked closely with the administrator throughout the pre-reorganization and reorganization proceedings.

The team assisted in attracting investors, coordinating among investors, the Company, and financial regulatory authorities, and restoring normal business operations through post-commencement financing under the bankruptcy proceedings. Hui Ye also assisted the administrator in obtaining support from major creditors and ensuring fair protection of the interests of all creditors, particularly agents and end users.

Through the joint efforts of all parties, the draft restructuring plan was approved. The court approved the restructuring plan within five months, enabling the distressed enterprise to overcome its difficulties and resume sustainable operations.

The selection of these two matters as Shanghai Bankruptcy Court’s 2025 Representative Cases reflects Hui Ye’s diversified capabilities in bankruptcy practice. In these cases, Hui Ye assumed different professional roles, including bankruptcy administrator and legal counsel to the debtor, demonstrating its ability to provide comprehensive legal solutions in complex restructuring matters.

This recognition reflects the Shanghai Bankruptcy Court’s acknowledgment of Hui Ye’s professional expertise in providing legal services for distressed enterprises throughout the bankruptcy lifecycle. It also highlights Hui Ye’s integrated capabilities across the full spectrum of bankruptcy practice, including pre-reorganization, reorganization, settlement, and liquidation.

Hui Ye remains committed to providing professional, diligent, and innovative legal services by leveraging restructuring and orderly market exit mechanisms to help distressed enterprises preserve value, revitalize operations, and achieve sustainable recovery. Through comprehensive legal solutions, Hui Ye continues to contribute to an optimized business environment and sustainable economic development.

Introduction to the project leader