Court rescues medical supplier on verge of bankruptcy
The Shanghai Bankruptcy Court has helped a local medical product manufacturer which almost went bankrupt to resume production during the coronavirus pandemic, the court announced on Tuesday.
The court, which was set up in February last year to handle bankruptcy-related cases, has accepted more than 1,300 cases so far.
According to the court, the company, established in 1999, had run out of money in 2018 and subsequently faced a string of lawsuits. When it was unable to pay off its debts, its creditors applied to the court for the company's liquidation.
But when the coronavirus epidemic broke out in China in January, there was a shortage of supplies used for epidemic prevention in the domestic market. At that time, the company's insolvency administrator found that it was qualified to produce medical supplies and had 350,000 masks in stock.
The administrator set up an emergency plan for the disposition of the company's property under the guidance of the court and sold out all of the masks.
To meet the needs of epidemic prevention and control, the court asked the insolvency administrator to find partners and use the company's manufacturing facilities to resume mask production.
After the administrator established a cooperation with another company, related government departments opened a green channel for procedures required to resume production. The company then reopened its mask production line and now provides medical supplies to the market.
The court said that in this case, with joint efforts made by different parties, the urgent disposition of the stock of masks was completed within 48 hours, while the cooperation and production line resumed within 10 days.