Tokyo Barrister: Start the law firm bankruptcy

Chapter 878 The lawyers’ counterattack!

The Tokyo High Court officially announced the initiation of bankruptcy proceedings. The entire East was shocked. On the afternoon of the official announcement by the court, the headlines of all the East Asian evening newspapers that evening were all about the initiation of bankruptcy proceedings for Nippon Steel. Many middle-aged people in the East felt incredible. The symbol of the East Asian economy's boom in the past was now falling. Only those who had experienced the East's previous glorious era could understand this strong psychological shock.

Nippon Steel's stock price has fallen by 99% and its bonds have almost hit zero.

All this happened in just two weeks.

The speed at which the Tokyo High Court announced the case was beyond everyone's expectations. Thanks to Kitahara, the Nippon Steel bankruptcy case set a record for the fastest bankruptcy announcement by the Tokyo High Court in history. Many news broadcasts invited well-known lawyers and law professors to comment on the case.

Naturally, these legal experts attributed the Tokyo High Court's quick decision to pressure from overseas courts. But what they didn't know was that this series of bankruptcy applications from overseas courts were the result of Kitahara's manipulation.

This news also quickly spread to Nippon Steel's labor union.

At this time, the union's voting schedule for the strike plan was halfway through, and there was still a month to go before the deadline. The sudden declaration of bankruptcy by Nippon Steel was also beyond the expectations of the union secretary Toyama. If Nippon Steel fell, the union would inevitably take action and tear off the last piece of bloody flesh from the corpse of this behemoth.

Nippon Steel has more than 70,000 industrial workers.

Just if each worker receives 10,000 yen, the expenditure will be over 700 million yen.

Secretary Toyama thinks that the union must take the majority.

Facing the bankruptcy proceedings that had just been initiated, Toyama immediately drafted an application for early ballot counting for the strike plan. In other words, there is still one month left before the strike voting deadline. The union will count the ballots in advance and as long as the number of votes reaches the minimum requirement for initiating a strike, the action can be initiated directly without waiting for the voting deadline.

In addition, Toyama asked the pickets that have been formed to continue to strengthen their vigilance. Violence is the most primitive means. Since the law has recognized that the workers' claims have priority in compensation, the next thing to do is to firmly guard the equipment in the factory. At the same time, the patrols set up by the pickets are also a disguised possession of the land. In short, the more hard assets the union holds, the greater the power of the union.

Toyama is a long-time member of the union.

Along the way, he also experienced moments of business bankruptcy.

He knew very well that when a company goes bankrupt, a creditors' meeting will be formed.

At that time, the creditors' meeting will be the union's biggest opponent.

However, as long as you can firmly control the company's land, equipment, and production lines in your own hands, you can sit back and relax no matter how bad the outside world is.

Legal provisions are one thing.

Putting it into practice is another matter.

Regardless of how much other creditors may be compensated.

But as long as the union pickets occupy the factory buildings and equipment, the creditors will be helpless.

Eventually, they will have to give in.

Soon, the union took action - the motion for real-time counting was passed immediately...

……

……

Meanwhile, the top executives of Nippon Steel did not give up. They were still making their final struggle. The luxurious legal team consisting of Tanimoto, Tamashiro and Abe decided to take the risk. Although the court issued a ruling to accept the bankruptcy.

However, don’t forget that the bankruptcy ruling will not be delivered to the real estate registration authority so quickly. This is a loophole in the law. Although it is delivered to the parties immediately, it will not be delivered to the various agencies that assist in the execution of the ruling so quickly.

This window of time is an opportunity.

The legal team of Nippon Steel decided to continue the process of mortgaging assets to the bank. If most of the assets can be mortgaged before the bankruptcy ruling takes full effect, then they will be able to gain a favorable situation.

The bank's mortgage priority has absolute priority in bankruptcy liquidation.

Once an asset is mortgaged, even employee claims must be ranked behind it.

As long as the vast majority of assets are mortgaged to banks, the banks will take the initiative and will be able to force other creditors to agree to their restructuring plan, which is to continue the strategic investment introduction plan for Future Space.

The three lawyers, Tanimoto, Tamashiro, and Abe, were certainly unwilling to lose to Kitahara so easily. They wanted to launch a counterattack to let Kitahara know that things were definitely not that simple.

The three lawyers knew that Kitahara now appeared to have successfully applied to initiate bankruptcy proceedings.

However, we are still a long way from finally achieving victory in recovering the debt.

After analysis, they concluded that under the current situation, although Beiyuan seemed to have stirred up a powerful situation, it was of no use at all.

The reason is——

These workshop contractors only have ordinary claims against Nippon Steel.

In other words, Nippon Steel needs to repay the debts owed to these workshop contractors, including the banks, employee wages, taxes, etc., before it is the turn of these contractors.

However, after the banks and trade unions have divided up the profits, there won't be much left.

In fact, there may not be any left at all.

Initiating bankruptcy proceedings will not be of any benefit at all in terms of repaying the debts owed to these workshop contractors.

Before bankruptcy is initiated, the law adopts the method of seizure and priority repayment.

Unless there is a mortgage on the seized property of Nippon Steel, whoever seizes it first will be paid first.

Then, now that bankruptcy has been initiated, ordinary claims can only be compensated in proportion. You know, in addition to the workshop contractors, there are nearly a thousand suppliers of Nippon Steel, and the claims of these suppliers add up to much more than the contractors. If the bankruptcy process is really compensated in proportion, then the workshop contractors will not get much.

The three lawyers, Tanimoto, Tamashiro, and Abe, decided to give Kitahara a big setback. Since you have caused such a big commotion, you must be rewarded accordingly. You have caused such a huge uproar, turning the originally arranged plan into a mess.

Future Space's strategic investment, the bank's financing plan, and major projects that many lawyers and accountants have put their sweat into were ruined by a lawyer from a small law firm who came from nowhere. This kind of thing is absolutely unacceptable. Everything must be done step by step, and everything must be back on track. Even if the bankruptcy procedure is initiated, there is still the possibility of turning it into a reorganization!

Yes, these three belligerent bankruptcy lawyers have decided to unite and ensure that the workshop contractor represented by Kitahara will not get a single penny!

(End of this chapter)