Tokyo Barrister: Start the law firm bankruptcy

Chapter 891: Unprecedented counterattack by bankruptcy lawyers!!!
"The next one is General Manager Uejima," Niwa said. "Nippon Steel's annual inventory loss rate is much higher than its peers. The only reasonable explanation is that these inexplicably missing steels were stolen by insiders and shipped to outsiders for sale. General Manager Uejima is in charge of the factory and steel sales."

"The steel produced by Nippon Steel had no complete inventory verification system, and the factory security was virtually nonexistent. General Manager Kamijima must have taken advantage of this loophole and embezzled a large amount of Nippon Steel."

"Another thing is the delivery of steel." Niwa said, "The actual number of steel customers received during the audit was inconsistent with the number of shipments. In other words, Nippon Steel actually shipped more steel than it actually delivered. After the steel customers received the goods, the excess was handed over to the designated company. These excess amounts were embezzled by General Manager Uejima."

"I have also asked several customers of Nippon Steel, and they said they have all encountered this situation. They vaguely knew that it was General Manager Uejima who was doing this, but they did not come out to testify."

In the office lobby, Niwa recounted the ridiculous things that happened in Nippon Steel one by one.

Such a national enterprise eventually became a fish on the chopping board, at the mercy of others.

Chairman Shibata, Financial Director Nagai, and Managing Director Uejima, each of them seems to be loyal to the company and dedicated to it, but in fact they are making huge profits!
Kitahara listened to Niwa's report and nodded.

"The next work is divided into two parts." Kitahara has thought of a plan in his mind. "The first part is to request the bankruptcy administrator to cancel the obviously unreasonable business contracts signed by Nippon Steel. These business contracts that are purely for the purpose of siphoning corporate funds need to be overturned and the funds that have been paid out need to be recovered."

"The second part is to file a criminal complaint. The bankruptcy administrator will report the people involved in internal corruption at Nippon Steel to the police, and the economic crime police will conduct a search. However, we can hold off on this second part of the work and wait and see."

"Shouldn't we punish those who are unscrupulously corrupt?" Niwa heard Kitahara say that he would postpone the second part of the criminal prosecution plan.

"We can't play all the cards at once." Kitahara said with a stern look in his eyes, "The bank's mortgage right has been cancelled. Nippon Steel should be planning a counterattack against us recently. Although we don't know the means of counterattack yet, it must be on the way. We will play this criminal accusation card after we receive a counterattack from the other party."

Kitahara is like an experienced chess player.

That is to skillfully arrange everything on the field.

……

……

……

In fact, as Kitahara expected, Nippon Steel was already preparing to launch a counterattack.

In the meeting room of Nippon Steel - Minister of Internal Affairs and Communications Terada, Shima Miho of Future Space, Shibata, Nagai, and Uejima of Nippon Steel, and representatives from major banks were all there.

At this moment, three lawyers, Tanimoto, Abe, and Tamashiro, were reporting on Nippon Steel's counterattack strategy. "The bank's mortgage has been revoked, what should we do?" Minister of General Affairs Terada asked anxiously while sitting in the meeting room, "Is there no other way?!"

"If the bank's proportion of debt in the subsequent creditors' meeting is high enough to pass all votes, then the reorganization plan for the mortgaged assets may still be approved," replied attorney Tanimoto.

"Then how can we ensure the bank's voting ratio?" Terada asked further.

"Minister of General Affairs, it is inconvenient for the bank to be exposed now. We can disguise the bank's debt as the debt owed by Nippon Steel to other companies." Tamashiro said, "As long as these companies and banks take joint actions when voting on the debt, we can ensure that the bank always has an absolute advantage, and even the proportion of debt can reach two-thirds."

"But isn't it too late to do this now?" Terada said, "And I also understand some of the provisions of bankruptcy law. Now all derivative lawsuits regarding Nippon Steel must be handled by the Tokyo High Court. If other companies fabricate debts and sue Nippon Steel, then the Tokyo High Court will ultimately have jurisdiction over it, and we may be blocked by that lawyer Kitahara again."

This time, Tamashiro smiled confidently, "Minister Terada, we have a way to evade exclusive jurisdiction over bankruptcy. That way is arbitration."

[Evading exclusive bankruptcy jurisdiction – arbitration]

[Once a company enters bankruptcy proceedings, all lawsuits will be under the jurisdiction of the bankruptcy court. This practice is called exclusive bankruptcy jurisdiction. However, the law does not stipulate how arbitration cases should be handled. Arbitration is a quasi-judicial method. That is, the parties agree that a non-governmental arbitration institution will adjudicate their commercial disputes. This is an arbitration agreement. With an arbitration agreement, the arbitration certificate issued by the arbitration institution is equivalent to the effect of a judgment, and arbitration is often final, with no appeal mechanism.]

"To put it simply -" Tamashiro began, "the bankruptcy law only stipulates that litigation cases must be subject to exclusive jurisdiction, but does not stipulate exclusive jurisdiction for arbitration cases. In other words, the commercial arbitration filed against Nippon Steel will continue to be heard by the arbitration institution, not by the Tokyo High Court."

"We can use a shell company to sign a fake contract with Nippon Steel, and then file a fake arbitration against Nippon Steel to demand that it pay back the money. Since arbitration is conducted in secret and does not need to go through the Tokyo High Court, the arbitration institution can issue a large number of arbitration decisions."

"The Nippon Steel debts recorded in these arbitration decisions are actually controlled by the bank. This way, the bank can be guaranteed to have a firm seat at the creditors' meeting!!!"

Tamashiro came up with an extremely vicious legal plan.

Yes--

An idea to bypass the Tokyo High Court!!!
Through arbitration, additional debts of Nippon Steel were fabricated.

The banks then use these shell companies as the real creditors and manipulate things behind the scenes.

Hearing this plan, everyone present couldn't help but sincerely admire the ability of lawyers like Tamashiro. They were able to tear open a hole in the airtight legal provisions and break through the exclusive jurisdiction of the Tokyo High Court! ! This is the terrifying professional ability brought by years of deep cultivation in bankruptcy law! !

Terada couldn't help but show his appreciation. Shima Miho also nodded in approval. As for the senior executives of Nippon Steel and the bank representatives, it was like they had grabbed a life-saving straw and found a way out of a desperate situation! !
Yucheng looked at the report in her hand. She was confident that this time, she would completely defeat Kitahara! Yes, Kitahara! When you are still immersed in winning the bank mortgage lawsuit, you will wake up one day and find that countless arbitration award documents will completely drown the debts of your workshop contractors!
(End of this chapter)