Tokyo Barrister: Start the law firm bankruptcy

Chapter 902: Another confrontation!
Yucheng and the others were shocked by Kitahara's words. This lawyer Kitahara actually asked to review the issue of the bank and Nippon Steel offsetting each other. When did he... when did he start to discover this behavior? ! Yucheng couldn't believe what he heard.

You know, using debts to offset each other to achieve priority repayment of debts is one of the difficult techniques in bankruptcy law. Without a deep understanding of bankruptcy law, it is impossible to discover this operation method. What is going on?! Yucheng didn't know what happened. The secret operation of the bank and Nippon Steel was discovered!

The representatives of the major banks in the audience were stunned after hearing this. Previously, Kitahara successfully revoked the bank's mortgage rights, but this time they seized on the issue of mutual offset of debts to attack? !

Offsetting of debts

It is the bank’s last line of defense.

If it is breached, the bank’s claims will be completely unprotected!
This may also result in the largest bank bad debt provision in Japan's history.

Think about it, this is Nippon Steel!
I don’t know how many banks have lent out huge sums of money.

Now, the fall of this behemoth, who knows what kind of situation will be caused!
Kitahara stood in court and continued, "Nippon Steel transferred its upstream assets such as mines and minerals to other companies, which resulted in a large amount of accounts receivable. At the same time, Nippon Steel transferred these accounts receivable to major banks. However, the banks did not need to pay the transfer fees, but instead used the transfer fees to offset the loans Nippon Steel owed to the banks."

"This behavior, without a doubt, has constituted individual repayment of debts. According to the bankruptcy law, it is a legal act that should be revoked!"

Next-

Miyakawa presented to the court the relevant transfer contracts, and email records between the bankruptcy administrator and the bank and Nippon Steel.

After all, when the bankruptcy administrator saw the transfer contract of accounts receivable between Nippon Steel and the bank, he would verify whether the bank had paid the transfer fee. The email reply he received was that the transfer fee was directly deducted from the debt owed by Nippon Steel.

Piece of evidence was presented.

Implement the debt offsetting between Nippon Steel and banks.

In the entire courtroom, only a few knowledgeable people in the gallery understood what the so-called offset of debts meant.

Yucheng's brows twitched slightly.

She never thought that one day she would be forced to this point in a bankruptcy case.

Objectively speaking -

This is the last line of defense.

If this lawyer Kitahara breaks through again, the consequences will be disastrous! !

"Chief Judge." Tamashiro stood up. "What Attorney Kitahara said is totally incorrect. From the transaction structure, there is no so-called individual repayment of debts. It's just that the bank was added as a subject in the process of buying and selling minerals."

"It is not true that lawyer Kitahara said that Nippon Steel transferred its accounts receivable to the bank. The actual contract only stipulates how the mineral buyer should fulfill its payment obligations. The bank is also involved in the transaction process of overseas buyers and plays a role in foreign exchange inflow and outflow and issuing letters of credit."

"This is a complicated transaction process. It is definitely not that Nippon Steel simply transferred the accounts receivable to the bank!"

"Well then..." Kitahara said, "Excuse me, who should the buyer of the minerals pay the money to? Should they pay to the bank? Or to Nippon Steel? Please tell everyone directly!"

Simple question.

Hit the mark directly.

If the money was paid to Nippon Steel, it would most likely be in compliance with the law.

After all, Nippon Steel transferred the minerals at fair value and received cash, which was helpful in supplementing the lack of cash liquidity. However, if the overseas buyers paid the money to the bank, it would be different.

This means that Nippon Steel transferred the mine resources without receiving any cash.

In fact, if the bank wants to be paid first, the money must of course be deposited into the bank’s account.

Otherwise, the core logic of this transaction arrangement is missing.

This is a nearly impossible question to answer.

If you answer that the money was transferred to Nippon Steel's account, then you are deceiving the court.

If you answer that the money was transferred to a bank account, it is a gratuitous transfer of property.

No matter how you answer, it seems to be a dead end.

Everyone present focused their attention on the female lawyer.

See how she will answer.

Yucheng swallowed slightly. This bankruptcy lawyer's superb expertise would definitely not be in vain. Yucheng said, "The money was transferred to the bank. However, the reason why the money was transferred to the bank was because of the letter of credit transaction."

【letter of credit】

[Letter of credit is a bank payment method commonly used in overseas transactions. For example, you want to sell a batch of goods abroad. However, you are not sure whether the buyer will abide by the contract and pay. So, you ask the buyer to open a bank letter of credit. The letter of credit is equivalent to the bank guaranteeing the payment for the goods.]

Tamashiro went on to say, "Mineral delivery is a lengthy process and may encounter legal uncertainties, such as environmental review, overseas buyer review, antitrust review, etc. Therefore, when buyers purchase Nippon Steel's minerals, it is impossible for them to pay the money directly into Nippon Steel's account."

"The buyer must first pay the money to the bank. Then, the bank will decide whether to pay the money to Nippon Steel based on whether Nippon Steel has fulfilled its delivery obligations."

"Therefore, Attorney Kitahara arbitrarily judged whether Nippon Steel had transferred assets for free based solely on who the money was paid to. This is absolutely incorrect!!!"

"This opinion by Attorney Kitahara reveals his ignorance of complex business transactions and international trade! He is trying to use simple language to generalize and discredit Nippon Steel and the bank!!"

Tamashiro launched a fierce attack on Kitahara.

The level of this bankruptcy lawyer is truly top-notch.

On the issue of debt offsetting, Tamashiro cleverly used the letter of credit system in international trade to explain why the buyer's money was paid to the bank instead of to Nippon Steel.

This reason is simply impeccable.

Yucheng also managed to create a chance to fight back in an almost impossible situation.

This demonstrates the extremely high level of this bankruptcy lawyer.

Yucheng's performance once again tells everyone that the professional knowledge formed by decades of deep cultivation in a certain field can never be surpassed overnight.

Except for the professional judge on the stage, most people at the scene could no longer understand the technical issues of bankruptcy law that Kitahara and Tamashiro were arguing about. The only thing the audience in the gallery understood was that this lawyer named Tamashiro had solved the problem Kitahara had just raised!
(End of this chapter)