The court’s judicial services write a new chapter in economic development—The High-Tech Court guides bankrupt enterprises through reorganization, helping them rise from the brink of collapse!

　　On the morning of September 20, 2016, the Zhengzhou High-Tech Zone Court held a press conference to announce the successful reorganization of the bankruptcy case involving Henan Dadi Agrochemicals Co., Ltd. This case is the first in Henan Province to achieve a substantive reorganization of an enterprise in bankruptcy, making it highly significant. The case administrator, representatives of creditors, representatives of strategic investors, representatives of enterprise employees, and representatives from more than ten media outlets—including Henan Television, Henan Daily, Henan Legal System Report, Dahe Daily, Henan Business Daily, and Zhengzhou Television—attended the press conference.

　　The press conference was chaired by Gao Xiaoming, the court’s spokesperson, a full-time member of the Adjudication Committee, and the case handler for the bankruptcy proceedings of Henan Dadi Agrochemicals Co., Ltd. Gao Shan, deputy secretary of the Party group and vice president of the court, briefed representatives from various sectors present at the meeting on the status of the case’s trial and the court’s key approaches. He also distributed the first batch of payment to creditors’ representatives and answered reporters’ questions regarding the handling of this case. Henan Dadi Agrochemicals Co., Ltd. enjoys a certain level of market recognition and exclusively owns a proprietary production system for the active ingredient ethyl allicin. However, due to years of accumulating substantial debts, intense conflicts have arisen among various stakeholders, including creditors, debtors, and employees. After accepting the bankruptcy case, the Zhengzhou High-Tech Zone Court did not simply declare the company bankrupt; instead, it adopted a case-specific approach, leveraging the company’s strengths to guide it toward bankruptcy reorganization. Through extensive visits and communications with multiple parties, the court resolved various conflicting interests and guided the administrator to employ diverse methods in inviting strategic acquirers. Ultimately, it successfully brought in Zhengzhou Jinzhijie Industrial Co., Ltd. as a strategic investor for the reorganization. On September 9, 2016, the court issued a ruling approving the “Reorganization Plan,” marking the successful reorganization of Henan Dadi Agrochemicals Co., Ltd. During the reorganization period, Dadi Agrochemicals upgraded its environmental protection equipment, generated some profits, and has now fully resumed production. As a result of the reorganization, the company has reduced its debt burden by approximately 75 million yuan, significantly improving the repayment rate for creditors and maximizing the protection of the legitimate interests of employees, creditors, and other stakeholders.

　　In handling bankruptcy cases, the Zhengzhou High-tech Zone Court has adhered to the principle of "safeguarding the legitimate rights and interests of both creditors and debtors and promoting industrial transformation and upgrading," striving to maximize mergers and reorganizations while minimizing bankruptcy liquidations and ensuring proper placement of employees. The successful handling of the bankruptcy and restructuring case of Henan Dadi Agrochemicals Co., Ltd. represents another vivid example of the High-tech Zone Court's successful rescue of companies in distress, following its previous successful bankruptcy settlements with Zhengzhou Weicai Pharmaceutical Co., Ltd. and Zhengzhou Zhongyuan Display Technology Co., Ltd. It also marks yet another proactive attempt by the court to implement the spirit of the Central Economic Work Conference—“reduce excess capacity, deleverage, destock, lower costs, and补短板”—and to vigorously advance supply-side structural reform, thereby promoting sustained and healthy economic development.