Beijing Judian Travel Technology (Judian), a joint venture established by Didi and Li Auto in 2018 to develop customised vehicles for ride-hailing services, faced financial collapse due to rapid changes in the electric vehicle industry and volatility in the mobility services market.
Unable to repay research and manufacturing debts owed to nearly 100 suppliers, Judian filed for bankruptcy liquidation. On 8 February 2023, the Beijing Bankruptcy Court accepted the application and appointed Zhonglun W&D Law Firm as the administrator the following day, with Liu Peifeng in charge of the administrator role.
Case summary
Following the appointment, the administrator’s team swiftly assumed control of Judian’s assets, accounts and key documents. They assessed the company’s asset status, investigated its liabilities, and promptly issued debt claim notices to potential supply chain creditors.
Senior Partner
Zhonglun W&D Law Firm
Tel: +86 158 1127 6882
E-mail:
liupeifeng@zlwd.com
During asset disposal, the administrator consulted creditors on Judian’s asset status, gathered their feedback, and conducted multiple public auctions to maximise the market value of the remaining assets, securing additional repayment resources for creditors.
In the final asset distribution process, the administrator upheld principles of fairness, impartiality, transparency, and open communication with creditors. The bankruptcy distribution plan was overwhelmingly approved by creditors.
On 29 May 2024, the asset distribution was completed, and the court officially concluded the bankruptcy proceedings.
Following the case’s conclusion, the administrator recovered additional receivables linked to employee misappropriation. On creditor applications, the administrator conducted supplementary distributions, further improving the repayment rate.
Now Judian has been legally deregistered and the administrator has concluded its duties.
Role of administrator
Diligent executor. The administrator demonstrated professionalism, fairness and dedication in the case. The team sought input from multiple parties, maintained thorough records during the process, and promptly reported to the court and creditors’ meetings, effectively driving and executing the bankruptcy proceedings.
The administrator consistently upheld a high level of professionalism and responsibility, ensuring every stage of the bankruptcy process adhered to legal and regulatory standards. In the early stage of the case, the administrator conducted a thorough investigation and analysis of Judian’s financial, asset and liability status, laying a solid foundation for subsequent proceedings.
Throughout the bankruptcy process, the administrator prioritised communication and co-ordination with the court, creditors and Judian. They promptly addressed challenges and actively sought solutions to ensure smooth progress.
Skilled mediator. The administrator demonstrated exceptional co-ordination skills in navigating the complexities of the bankruptcy process. Addressing key issues such as Judian’s asset status, valuation and distribution, they fostered active communication with creditors and the debtor, establishing mechanisms for dialogue and collaboration.
During the claims submission and review stage, the administrator meticulously examined claims in strict compliance with legal requirements to ensure their authenticity and legitimacy.
In the asset valuation and disposal stage, a comprehensive assessment and fair pricing of Judian’s assets ensured maximum realisation value, securing greater repayment resources for creditors.
Trusted guardian. As a joint venture between two nationally renowned companies, Judian attracted significant public attention, with its creditors primarily comprising prominent enterprises in the new energy vehicle supply chain and closely monitoring the bankruptcy proceedings.
The administrator prioritised transparency and credibility, regularly disclosing updates on the bankruptcy process and welcoming oversight from creditors, the debtor and the court. This approach earned widespread recognition from both the court and creditors.
Significance
In this case, the bankruptcy administrator aimed to set a benchmark for handling bankruptcy proceedings through standardised practices, professional co-ordination, and transparent communication. The case’s exemplary significance is reflected in three key aspects.
Establishing a model of procedural justice. By strictly adhering to the Bankruptcy Law and operational guidelines, the administrator maintained a fully standardised approach through all stages, from asset verification to plan implementation. Through systematic financial analysis, regular reporting and strict compliance with statutory procedures, the case set a benchmark for compliant bankruptcy operations.
Resolving disputes through multidimensional co-ordination. The administrator fostered dynamic communication among creditors, the debtor and the court by creating a balanced mechanism to address key issues such as asset disposal and debt confirmation, reflecting the team’s expertise in aligning diverse interests in bankruptcy proceedings.
Rebuilding market confidence through transparency and credibility. In this high-profile case, the administrator implemented a two-way information reporting system, disclosing case progress through creditor meetings and other channels. This approach, achieving “zero objections and zero derivative litigation”, established a new model for trust-building in corporate bankruptcy management.
The administrator team ensured efficient case progress through a blend of legal rigour, managerial flexibility and effective communication, offering valuable practical insights for other bankruptcy cases.
Liu Peifeng is a senior parter at Zhonglun W&D Law Firm, a director at the Bankruptcy Restructuring Legal Committee, and a director at Bankruptcy and Liquidation Legal Committee of Beijing Lawyers Association. He can be contacted by phone at +86 158 1127 6882 and by email at liupeifeng@zlwd.com
