Tokyo Barrister: Start the law firm bankruptcy

Chapter 881 Fighting Again

At the city hall, Kitahara and his team kept looking through the results of the ownership check of these lands and factories. Basically, in the column of rights status, the bank's mortgage rights were set. This means that in the bankruptcy liquidation, the bank will be given priority for repayment. Whether it is the actual bankruptcy liquidation or the subsequent creditors' meeting, the bank will have almost absolute say.

"How come so many assets have been mortgaged to the bank?!" Miyakawa said in disbelief as he looked at the results. "Some of the factories were just built last month, but within a week, they were mortgaged to the bank!"

"They are indeed moving very quickly," Kitahara said. "It seems that they are trying to force the financing plan that was interrupted by the bankruptcy procedure to continue. They should be frantically registering mortgages to protect the bank's creditor's rights before the bankruptcy procedure ruling is sent to the city hall."

"So what should we do next?" Niwa asked. "Looking at the status of these assets, more than 90% have been mortgaged. Although there are still assets we haven't sorted out yet, the approximate proportions should be about the same. This means that almost all of Nippon Steel's assets have become collateral for the bank."

"The next step is to declare war." Kitahara said, looking at the documents in front of him, "We will ask the bankruptcy administrator to exercise the right of revocation and cancel the bank's mortgage registration."

Once the company initiates bankruptcy proceedings.

Then a detailed investigation will be conducted into the company's asset status.

If the security right is established illegally, the bankruptcy administrator will be able to revoke the security right through prosecution.

This is the option presented to Kitahara and his group.

Only by revoking the bank's guarantee rights can there be a chance of a turnaround.

"The bankruptcy process is a long battle," Kitahara said. "We need to be prepared to file more than one lawsuit."

"More than one lawsuit?!" Niwa was slightly surprised.

“Yes, there may be several, or even more than a dozen lawsuits,” Kitahara said.

The sun sets in the west, and the evening light shines through the glass onto the people in the city hall.

……

……

……

A few days later, at Nippon Steel headquarters.

meeting room.

"Please explain to us what these banks' security rights are!" Miyakawa said.

In the meeting room, the bankruptcy administrator, Attorney Chihiro Matsuyama of the Urayoshi Itoga Law Firm, was presiding over the meeting. Attorneys Tanimoto, Tamashiro, and Abe were also present. Kitahara and his team had already submitted a request to the bankruptcy administrator to revoke the bank's mortgage.

Today's meeting was to deal with this matter. "There is nothing to say about this," Anbu replied rather coldly, "The bank's establishment of a mortgage is legal and compliant, and there is nothing to blame."

"How can it be legal and compliant!!" Miyakawa glared, "The Bankruptcy Law clearly stipulates that debtors are prohibited from making individual repayments. You set up such a huge amount of security rights in a short period of time before the bankruptcy ruling was issued. You are actually circumventing the prohibitive provisions of the Bankruptcy Law."

What Miyakawa meant by prohibiting debtors from making individual repayments is that a company that has been declared bankrupt cannot repay a single creditor. For example, a bankrupt company has five creditors, A, B, C, D, and E. The company cannot use the money to repay only A's debt, but must repay the claims of all five creditors in proportion during the bankruptcy procedure.

"Miyagawa, lawyer!" Yucheng said from the side, "You are being biased! What do you mean by circumventing the prohibitions of the Bankruptcy Law?! We fully respect the provisions of the Bankruptcy Law and establish mortgages!!"

"Before you filed for bankruptcy, the major banks reached a partial financing plan with Nippon Steel and signed a partial loan contract, and these collaterals were a prerequisite for issuing loans. Excuse me, is there anything illegal in doing this?!"

"Moreover! If you hadn't suddenly initiated bankruptcy proceedings like this, Nippon Steel wouldn't have reached this point!" Tamashiro began to scold.

Kitahara smiled unexpectedly when listening to Tamashiro's words.

"What are you laughing at! Lawyer Kitahara!!" Yucheng retorted bluntly.

"As a strategic investor, Future Space cannot possibly take over Nippon Steel's debts." Kitahara's voice rang out, "The financing plan is only to provide your bank with more collateral to ensure the security of the creditor's rights. Your statement that 'there is no need to go this far' is just that your plan will help maximize the interests of banks and strategic investors, but it will completely trample on the interests of other creditors of Nippon Steel!"

"I don't want to waste any more words with you." Yucheng looked at the bankruptcy administrator Songshan, "What exactly is the purpose of today's meeting?"

Matsuyama also felt the aggressiveness of the female lawyer Tamashiro.

Lawyer Songshan is a veteran in the field of bankruptcy law and has handled many bankruptcy cases. Unexpectedly, he witnessed such a tense situation between the parties just after the bankruptcy procedure of Nippon Steel began. It is relatively rare to have such intense friction at the beginning of the procedure.

"Our request is very simple," Kitahara said. "The facts that your major banks have illegally established mortgages are clear and the evidence is irrefutable. The purpose of today's meeting is mainly to ask you to take the initiative to cancel the registration of the mortgages."

Cancel the registration of mortgage rights?! Yu Cheng suspected that he had heard wrongly. The young lawyer in front of him actually made such a request, asking the bank to take the initiative to cancel the mortgage rights of these land and factory buildings. Isn't this a fantasy?! Is Kitahara's brain burned?!

"Are you kidding me, Lawyer Kitahara?" Yu Cheng said, "The mortgage right is the lifeline of the bank and the guarantee of the bank's debt. Moreover, it also enables the bank to play a positive and constructive role in future creditors' meetings. How could the bank take the initiative to cancel it?!"

"Because you have violated the law, you need to cancel your registration," Kitahara said. "Today's meeting is to give you such an opportunity."

"You are too arrogant!" Tanimoto also shouted beside him. The three bankruptcy lawyers did not expect the young man in front of them to be so arrogant. He even claimed that today's meeting was to give the bank a chance? !

"We can't do that," Tanimoto said, "Neither the bank nor Nippon Steel will cancel these mortgages!"

"If that's the case, then we can only entrust the bankruptcy administrator to sue you!" Kitahara said.

(End of this chapter)