Tokyo Barrister: Start the law firm bankruptcy

Chapter 885: The Trap in the Counterattack

"Regarding the other party's lawyer's question about the huge gap between the actual loan amount and the value of the collateral," Tanimoto said, "I would like to draw the attention of Attorney Kitahara! Long before, the six major banks had provided a large amount of loans to Nippon Steel. At that time, these loans had no collateral. Now, Nippon Steel is providing collateral to protect past debts!"

When Tanimoto said this, he deliberately set a trap.

Wait for the other party to refute you.

The trap is the issue of collateral for old debts.

According to the bankruptcy law, if the old debt is not secured, then the bankrupt enterprise cannot provide new security for the old debt. For example, before entering the bankruptcy procedure, a company already owed 10,000 yuan. Then, the company cannot provide security for the existing 10,000 yuan debt.

Tanimoto believed that the other party would immediately stick to this point and refute it.

After hearing this, Beiyuan smiled and said, "Chief Judge. The Bankruptcy Law clearly stipulates that companies cannot provide guarantees for old debts. Now, the other party's lawyer said that these guarantees are all for old debts in the past. Then there is no doubt that they have met the conditions for revocation clearly stipulated by the law!"

Hearing Kitahara's rebuttal, Tanimoto showed a slightly smug expression.

Yes, the young man opposite took the bait.

Sure enough, he thought this was a flaw and chased after him immediately.

It's like throwing a handful of food into a fish tank, which immediately attracts a group of goldfishes to scramble to grab it.

Take the bait when there is bait.

You are done this time!! Kitahara!!!

At this time, the bank executives in the audience heard that Tanimoto had been caught by Kitahara, and they couldn't help but worry. They didn't know why Attorney Tanimoto deliberately revealed such an oversight.

However, Tanimoto was very calm at this time.

Tanimoto said, "Please let me explain in more detail. Nippon Steel actually has a large amount of bank debt that has matured. A month ago, six major banks signed a new loan contract with Nippon Steel and agreed to lend the money in the form of new loans to repay old loans, and to add collateral at the same time."

Tanimoto mentioned a noun.

【Borrow new and repay old】

【The so-called borrowing new to repay old means that the bank issues a new loan to the debtor, but this loan can only be used to repay the original bank debt. For example, a company owes the bank a loan principal of 100,000 yuan and interest of 10,000 yuan. The bank issues a new loan of 110,000 yuan to the company to repay the original loan principal and interest. After the company receives the money, it uses it to repay the original loan. After repayment, because of the new loan, the company still owes the bank 110,000 yuan, but at this time the money has been converted into loan principal】

"Please note that there are two loan contracts here, one is the old loan contract and the other is the new loan contract."

"After obtaining the new loan, Nippon Steel repaid the old debt. The old debt contract was declared extinguished." Tanimoto said, "The bankruptcy law only prohibits companies from providing guarantees for old debts, but does not prohibit providing guarantees for new debts!"

"On this point, you can see the previous case of the Supreme Court!" Tanimoto took out a stack of documents. "In the civil judgment of Taika 36, ​​Civil [236], the Supreme Court held that the bankruptcy law prohibits enterprises from providing guarantees for old debts. However, it does not prohibit enterprises from providing guarantees for new debts. The legality of banks borrowing new money to repay old debts and adding guarantees is recognized by the judgment. Therefore, based on the binding force of precedents, this case should be handled in the same way!!"

Tanimoto delivered a long speech.

But it hits the core issue of bankruptcy law.

Kitahara wanted to point out that Nippon Steel was guaranteeing old debts, but Tanimoto pointed out that the bank had carried out an "old loan for new" operation. There were actually two loan contracts, the old one and the new one. The old loan contract had been eliminated because the loan was repaid, leaving only the new one. As for the new loan, the law did not prohibit bankrupt companies from providing guarantees for it.

Miyagawa, who was standing nearby, showed a surprised expression when he heard Tanimoto's argument.

She hurriedly flipped through the previous Supreme Court case submitted by Tanimoto. Looking at the main text of the previous case, it was indeed as Tanimoto said, recognizing the guarantee of new debts by bankrupt companies.

Miyakawa was shocked and didn't want to believe that this was reality. This was completely different from the bankruptcy law she had learned in college. How could this be?!

How can there be such a loophole in the law? !

Obviously, borrowing new money to repay old debts is a disguised form of delayed repayment. Why did the Supreme Court approve this practice?!

However, even if Miyakawa was unwilling to admit it.

The facts before us are facts after all.

This world is so cruel.

The law clearly stipulates that things cannot be done.

However, there are always people who can find loopholes and do it.

Moreover, it is often those with great power and energy who take advantage of loopholes.

It seems that the law has become nothing more than a shackle to bind the powerless.

The bank executives in the audience were relieved when they heard Tanimoto's beautiful rebuttal. As expected, as expected of lawyer Tanimoto, he had a back-up plan. Moreover, he even brought up the precedent of the Supreme Court. In this case, how can the other party's lawyer refute it? !

Tanimoto looked at the young man opposite him and couldn't help feeling proud.

Yes, today I want to make this young man in front of me understand what the gap is!

Expert knowledge acquired through years of professional practice can never be surpassed overnight.

He wanted to let this Beiyuan understand what strength really is! !

Everyone's eyes fell on Beiyuan.

They couldn't help but wonder how Kitahara would deal with it.

Kitahara couldn't help but grin inwardly as he listened to Tanimoto's response. This lawsuit was finally starting to get interesting. The three lawyers on the other side were all experts specializing in the field of bankruptcy. Of course, Kitahara had experience in representing many major lawsuits before, but in terms of familiarity with bankruptcy law, Kitahara was definitely not as good as those three lawyers.

This is not a deficiency.

This is human-made.

Human energy is limited.

It’s impossible to be good at everything.

Therefore, for extremely detailed professional knowledge such as "borrowing new to repay old" that is not subject to cancellation, it is almost impossible to notice it unless you are a practicing lawyer in the bankruptcy field.

But, that's why it's interesting, isn't it? This is what Kitahara thought. He is a monster thirsty for blood and fighting. Tanimoto's rebuttal was like the smell of blood in the forest, which aroused the bloodlust of the monster deep in the darkness. The young man's eyes seemed to be flashing with a terrifying red light. Facing Tanimoto's argument, he also stood up and began to fight back strongly...

(End of this chapter)