Bankruptcy court launched to handle enterprise cases
February 02, 2019
A special bankruptcy court was set up at Shanghai No.3 Intermediate People's Court on Friday to handle cases related to the compulsory liquidation and bankruptcy of enterprises, the intermediate court said.
The special court has been set up to clean up "zombie enterprises" — unprofitable firms that are unable to stand on their own feet and who need bailouts to operate, or are kept afloat by lenient creditors and below-market interest rates — and ensure sustainable and healthy economic growth.
The court will handle compulsory liquidation, bankruptcy, cross-border bankruptcy and other related cases for firms registered in local districts. It will focus on tackling the "zombie enterprises" and promoting the orderly withdrawal of market players as well as giving assistance to companies in trouble.