Tokyo Barrister: Start the law firm bankruptcy

Chapter 910 The Final Battle

Kitahara and others quickly submitted a bankruptcy recovery lawsuit to the Tokyo High Court. When the lawsuit was delivered to all parties, it instantly caused a huge stir.

At this time, the creditors' meeting of Nippon Steel had been successfully established. The reorganization plan proposed by the cabinet working group was bound to be passed. Everyone believed that the bankruptcy of Nippon Steel would end here.

Too big to fail.

This is an unchanging reality.

As long as you are big enough, someone will naturally come to your rescue when a crisis occurs. This is also the reason why the termites in the top management of Nippon Steel can always make a living. As long as the company is big enough, it can hijack enough people.

At first, when Nippon Steel received Kitahara's lawsuit documents, no one cared. When Tamashiro, Tanimoto, and Abe received Kitahara's lawsuit documents, they even laughed while holding the envelopes. Obviously, they didn't believe that Kitahara could come up with any more tricks.

This time, the reorganization plan designated by the cabinet is——

It is the will of the state.

Who would be stupid enough to engage in confrontation?

However, when Yucheng tore open the envelope and began to read casually, her expression gradually changed. A drop of cold sweat broke out on her forehead. Then, her hands trembled slightly, as if she was facing a great enemy.

Tanimoto and Abe who were standing nearby also noticed something unusual and immediately took the materials to read.

They saw a few big words -

Take back the right!
As bankruptcy lawyers, they certainly know what this means. The exercise of the right of recovery means that almost all procedures in bankruptcy law can be bypassed, including the reorganization plan!!!
What made Tamashiro and others even more worried was that Kitahara pointed out in the indictment that Nippon Steel itself admitted that it was holding the funds for the contractor.

If these escrow funds are truly confirmed to be the workshop contractor's funds, then the workshop contractor can also exercise the right of recovery.

What’s more important is that this will create a strong demonstration effect.

This means that there are tens of thousands of suppliers who can use the right of recovery to claim the money owed to them by Nippon Steel.

Yucheng immediately flipped through the contract between Nippon Steel and the supplier. As expected, their contract was similar to the contract of the workshop contractor, with similar wording. The contract also stated that Nippon Steel would temporarily hold the settlement payment for the supplier. This meant that if Kitahara won, the suppliers would be able to follow suit! !
Nippon Steel is running low on cash.

If the workshop contractors and suppliers all use the right of recovery to recover their payments, then Nippon Steel’s cash will be completely drained!!

The restructuring plan will definitely change again!!

Yucheng and others immediately reported the situation to the senior officials of the Nippon Steel bankruptcy case. These senior officials also did not expect that at the last minute, such a variable could arise? !

After learning about this, Shima Miho of Future Space frowned even more. If Kitahara's lawsuit is successful, it means that the restructuring plan will be shelved again. The change in cash assets will require the restructuring plan to be drafted from scratch.

However, the mine assets of Nippon Steel contain rare earth resources. How long can this important news be concealed? Even if the organization makes great efforts to block it, it will definitely leak out one day. Especially at this time, every creditor is staring at every asset of Nippon Steel with a magnifying glass to see if there is any undiscovered value.

If we keep the news about rare earth resources secret for a while longer, it will be leaked!!

That night at the Nippon Steel headquarters building, all the lawyers and accountants who drafted the reorganization plan were forced to work all night to quickly clarify the impact of the repossession lawsuit. The first part of the workshop contractor's lawsuit was to take back the production equipment and production lines. A very important part of the reorganization plan is to deal with the production lines with low capacity utilization. Now that the United States is imposing tariffs, many steel companies are considering building factories in the Americas.

Then, Nippon Steel's redundant production equipment and production lines can be sold to those companies that want to build factories in America to recover some of the funds.

However, this lawsuit has completely disrupted this plan. Most of Nippon Steel's own equipment is relatively old, and after depreciation, the residual value of the equipment is actually not much. In recent years, the newer equipment has been introduced by workshop contractors.

The second part is getting the cash back.

This is also the most controversial part of this lawsuit.

That is to exercise the right to withdraw "money".

This is unprecedented in previous right-of-recovery lawsuits.

Generally speaking, the objects of retrieval are production equipment, raw materials, etc. For example, a telecommunications company rents out its servers to a computing power company. If the computing power company goes bankrupt, the telecommunications company can exercise the right of retrieval and take back the servers.

However, what is being retrieved now is "cash".

In civil law, there is such a legal principle:

Whenever money is transferred, ownership is transferred as well.

You lent your friend 10,000 yen. You can only ask your friend to pay you back 10,000 yen, not the 10,000 yen note you gave to your friend.

If money is transferred but the ownership of the money is not transferred, it will cause great confusion.

The same principle applies to Nippon Steel.

That is, Nippon Steel did not pay these funds to contractors and suppliers. Therefore, the ownership of these funds still belongs to Nippon Steel, and the workshop contractor does not have the legal basis to exercise the right of recovery.

In any case, Kitahara has raised an extremely difficult legal issue.

The top leaders of Nippon Steel are all watching the new lawsuit with great concern. If this unreasonable lawyer really wins, then the cabinet working group's restructuring plan will be frustrated, which will be a blow to the prestige of the current cabinet. Minister of General Affairs Terada is already in trouble because of the Eriko incident. If the restructuring plan is frustrated again, it will completely end Terada's career as a member of parliament.

The union was also angry after learning about the right of repossession lawsuit. Of course, it was impossible for Toyama to agree to the workshop contractor to dismantle the factory equipment and transport it back. The unions of other bankrupt companies are also paying close attention to the progress of the Nippon Steel bankruptcy case. If the right of repossession really becomes a way, it will be extremely detrimental to protecting the rights and interests of workers in bankrupt companies.

All parties involved in the transaction are keeping an eye on the progress of Nippon Steel's bankruptcy case.

The significance of the Nippon Steel bankruptcy case has far exceeded itself. Every stakeholder is paying attention to their own interests, even more than Nippon Steel itself.

The Tokyo High Court quickly launched a trial on the right of recovery case...

(End of this chapter)