Bankruptcy tribunal saves 27 high-tech firms, 2,000 jobs since 2024

Focusing on the needs of technology-driven enterprises, Beijing bankruptcy tribunal has, since 2024, rescued 27 small and medium-sized high-tech businesses through the rule of law, helping them overcome operational difficulties and serving industrial development.

These rescued companies are involved in cutting-edge sectors, such as artificial intelligence, big data, intelligent healthcare, digital culture and tourism, and computing power infrastructure, according to a statement from the tribunal under the Beijing No 1 Intermediate People's Court.

"Through restructuring and settlements, we've introduced 2.4 billion yuan ($337 million) in investments, resolving over 10 billion yuan in various debts for these enterprises, and stabilized the jobs of more than 2,000 employees," Li Zhongyong, vice-president of the court, told a news conference on Tuesday.

He emphasized the importance of judicial measures, noting that they have contributed to maintaining the operation of technological projects related to people's livelihood, including those in finance and healthcare.

"In the high-tech industry, the technology lifecycle is short, and market demands change rapidly," he said. "If a company falls behind market needs and loses its competitiveness, it may quickly face operational difficulties."

"This situation places high demands on the timeliness of judicial actions to rescue such enterprises," he said.

Meanwhile, the core competitiveness of tech innovation enterprises lies in their research personnel and scientific technologies, with a significant portion of their assets being intangible, such as copyrights and patents, and substantial investment in research and development, "all of which have increased the complexity of using legal measures to help these companies repay their debts," he added.

To address these issues, he revealed that the tribunal has streamlined case handling procedures and suitably relaxed the legal standards for case reviews, enabling distressed companies to swiftly enter bankruptcy protection proceedings.

In addition, the tribunal listened to the opinions of different departments and stakeholders within the enterprises to tailor debt settlement plans, he said, adding that the approach ensures that the businesses continue with technological research during the restructuring and liquidation processes.

"We'll further improve the rules for helping high-tech enterprises get out of operational difficulties, with more efforts in educating legal talent to make relevant case handling more professional," he added.