"Break the 'building' rebirth" to protect the people's livelihood

Recently, more than 100 owners came to the sales office of The Chenghu Yijingyuan Project of Kunshan Shenzhoutong Real Estate Development Co., Ltd. (hereinafter referred to as Shenzhoutong Company) to participate in the handover ceremony that has been expected for one year. "We are very grateful to the judges of the Kunshan court, if it were not for their dedication, I really don't know when I will get my own house." Old Li, who participated in the delivery of the house on the same day, was extremely emotional. The bankruptcy case of the "Shenzhou Tong" real estate project is the first time that the Kunshan court has adopted a case in which the administrator directly resumed work and continued construction in the liquidation process, which protected the rights and interests of the people's livelihood and maintained social order and stability to the greatest extent.

At the end of 2019, due to the involvement in a number of judicial cases, the account funds were frozen, and the development of the Chenghu Yijingyuan residential project was forced to stop, and 630 houses had been sold to the outside world. The first delivery of homes, which were supposed to be in August 2020, was also in vain. The creditors submitted an application for bankruptcy liquidation to the Kunshan court.

Under the auspices of the bankruptcy collegial panel judge, the creditors, China State Connect Company and the buyers were convened to hold a hearing to preliminarily verify the company's creditor's rights and debts. "Considering that the case involves a large number of people and the well-being of the people, we ruled on August 25 that Shenzhou Tong Company should be bankrupt and liquidated, and on the same day, we appointed a bankruptcy administrator, setting a record for the most efficient acceptance of real estate bankruptcy cases by our hospital." Bankruptcy Collegiate Judge Ou Ping introduced. On December 31, 2020, the first creditors' meeting of the bankruptcy liquidation case of China State Tong Company was successfully held under the auspices of the court, and the creditors' meeting voted and passed four proposals.

For such a large number of residential projects to go bankrupt, "one break" or to promote the continuation of construction? Through the linkage mechanism between the government and the court, the Kunshan court issued a recommendation to the territorial government to establish a special working group composed of the territorial government's housing construction, taxation and other departments, and selected lawyers and other professional institutions with real estate bankruptcy liquidation experience to join the working group, and the working group served as the bankruptcy administrator. Ou Ping said that in consideration of the needs of the continuation of the construction work, the manager retained the original project engineering, financial leader and some sales staff. After entering the bankruptcy procedure, the Kunshan court centralized the funds in the account of Shenzhou Tong Company in accordance with the law, and the manager made a special account for special use, guided the manager to carry out assessment, audit and other work, lifted the contract with the original construction unit that was "entangled in debts", determined the new construction unit, and carried out the continuation work in a solid and orderly manner.

At the beginning of December 2020, the Chenghu Yijingyuan project officially obtained a new construction permit, and more than 30 people, including the court, the territorial government, the bankruptcy administrator and the owner's representative, attended the comprehensive resumption ceremony, and the remaining houses and parking spaces also resumed external sales. The Kunshan court has always maintained effective communication with the buyers, regularly invited the buyers' representatives to the construction site to check the progress of the project, and constantly rectified the existing problems until the buyers were satisfied. The real estate that was once caught in the "bad tail", after bankruptcy and reorganization, has now "changed the old appearance for a new look", becoming a symbol of the surrounding high-quality real estate, and the majority of buyers have also taken the initiative to "praise" the efficient and pragmatic "praise" of the court and the government in the local forum from the continuous "spitting" in 2020. Up to now, more than 600 houses have been delivered one after another, and relevant property rights certificates are being processed.

In October 2021, the Kunshan Court's "Breaking 'Building' and Reborn" Government-Court Linkage Workstation was officially unveiled, further strengthening the communication and coordination between the court and the functional departments of the government, especially in market supervision, administrative approval, bankruptcy financing, wage advance and other aspects of the refinement and expansion of the breadth and depth of cooperation. "We will always adhere to the concept of justice for the people, strengthen the professional construction of bankruptcy adjudication, give play to the value of the bankruptcy liquidation system, give priority to protecting the rights and interests of the people's livelihood, and escort the stable development of the economy and society." Zou Weiqi, vice president of the Kunshan court, said.

【Source: Jiangsu Legal Daily】

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