On January 28, 2019, the People's Court of Wenling, Zhejiang Province, ruled to approve the Restructuring Plan of Wenling Respiratory Hospital and terminate the restructuring procedure of Wenling Respiratory Hospital. This marks a significant achievement in the restructuring of Wenling Respiratory Disease Hospital and promotes the development of Taizhou's medical industry. This reorganization case takes a short time, creating a record of reorganization cases in Wenling City, and will also become a specimen of enterprise reorganization in Taizhou City.

Overview of Wenling Respiratory Disease Hospital

Wenling Respiratory Hospital is the only brand specialized hospital in Zhejiang Province that focuses on the diagnosis and treatment of Respiratory disease, and is the cooperative diagnosis and treatment center of Zhongshan Hospital affiliated to Zhongshan Hospital in Shanghai. The series of prescriptions for respiratory diseases in hospitals have obtained national patents and have unique therapeutic effects on treating acute and chronic pharyngitis, asthma, and pneumonia. In recent years, the hospital has been in a difficult business situation, with consecutive years of losses and difficulties in paying off maturing debts.

On June 23, 2018, the People's Court of Wenling City ruled to accept the bankruptcy reorganization of Wenling Respiratory Hospital. On August 20, 2018, the People's Court of Wenling appointed Zhejiang Liqun Law Firm, Zhejiang Jiaruicheng Law Firm and Wenzhou Zhongyuan Lide Accounting Firm (joint team) as the managers of Wenling Respiratory Hospital, and the joint management team jointly promoted the restructuring of Wenling Respiratory Hospital. The project team of Liqun Institute is led by Lawyer Qiu Sujuan, Deputy Director of Liqun Institute and Director of Bankruptcy Management Department, and Lawyer Jin Wei, Deputy Director of Bankruptcy Management Department. Several senior lawyers including Feng Yi, Ruan Taotao, Cai Wanying, Xu Hangang, and Jiang Wan participated.  

On November 28, 2019, Lawyer Jin Wei from Zhejiang Liqun Law Firm gave an interview on the restructuring of Wenling Respiratory Disease Hospital on the Taizhou Wealth Channel.

The restructuring case of Wenling Respiratory Disease Hospital is complex, involving many litigation cases, a large number of creditors, and a large amount of creditors. The review and coordination work of the manager is difficult. In addition, ensuring the normal operation of Wenling Respiratory Disease Hospital during the restructuring process has also put forward higher requirements for managers. The bankruptcy team of Liqun Institute has excelled in completing various tasks with rich experience in bankruptcy management.

Moderate separation of 'qualifications and equity'

During their tenure as the manager, Liqun Institute and its joint team innovated a moderate separation of qualifications and equity for bankruptcy reorganization model based on the special nature of this case. In cases where the debtor's equity cannot be auctioned or no one can buy it, investors were recruited through open competition to inject capital into the debtor. After the investors injected funds according to the investment agreement reached with the manager, the connection between the investors and the debtor's debt was cut off, To achieve the purpose of maintaining the debtor's main qualifications and qualifications, and retaining the debtor's main business. This model has been applied in the bankruptcy reorganization case of Wenling Respiratory Disease Hospital and achieved good results.

The successful restructuring of Wenling Respiratory Disease Hospital this time is of great significance for providing services to ensure the development of local medical undertakings and reshaping the confidence of enterprises in restructuring.

Introduction to the Bankruptcy Administration Department

Liqun Institute was founded on January 18, 2000. It is an outstanding law firm in Zhejiang Province, one of the top 100 law firms in Zhejiang Province, and one of the first batch of famous law firms in Zhejiang Province. It has been rated as the advanced collective of Taizhou judicial administration system for many consecutive years. It is the first batch of registered management units recognized by the High people's court of Zhejiang Province. It enjoys a certain reputation in the field of bankruptcy management and has rich experience in bankruptcy management.

The bankruptcy management team of Liqun Institute currently has more than 20 members, and has handled over 90 cases of bankruptcy liquidation, bankruptcy reorganization, compulsory liquidation, and personal debt liquidation separately or in cooperation with joint managers. These include major, difficult, complex, or socially significant cases such as the bankruptcy reorganization of a private unincorporated enterprise in Wenling, the first bankruptcy liquidation case of a household textile company in Taizhou in Zhejiang Province, the forced liquidation case of a development and construction company that recovered tens of millions of state-owned assets, and the personal debt liquidation case of Huang, the first batch of pilot projects in Taizhou.