PCB News - The court officially ruled that a PCB company in Guangzhou was declared bankrupt

Bankruptcy of PCB companies in the liquidation industry
Based on an applicant’s application, the court ruled to accept the bankruptcy liquidation case of a PCB company in Guangzhou
According to the announcement of the Guangzhou Intermediate People's Court of Guangdong Province (hereinafter referred to as the court) on August 26, 2021, on June 28, 2020, the court decided to accept the bankruptcy liquidation case of a PCB enterprise in Guangzhou based on an applicant's application. It was found that the court ruled on July 15, 2021 in accordance with the law to confirm the claims of 210 creditors totaling RMB 40,793,354.55. According to the report submitted by the manager, as of now, the company’s assets mainly consist of cash totaling RMB 160,6610.03 and HKD 992.44; the disposal price of machinery and equipment is RMB 2,326,642.80; the disposal price of vehicles is RMB 5,321. HKD 992.33. The court held that the existing assets of the company were insufficient to pay off all due debts. In accordance with Article 107 of the Enterprise Bankruptcy Law of the People's Republic of China, the court ruled on August 23, 2021 to declare the enterprise bankrupt.
It is understood that the company stated in the "Notice on the Dissolution of the Company and the Treatment of Credits and Debts" in early March 2020 that due to environmental protection rectification and the break of the capital chain, the company has suspended production for a long time. During the period, the company's management has tried various methods such as introducing new investors, but no real results have been achieved.

At the same time, due to the deterioration of the macroeconomic situation caused by the new crown epidemic in 2020, new investors formally notified the cancellation of the plan to merge companies after the Spring Festival. The company that lost the investment in the merger can only file for bankruptcy in the court.
An employee of the company revealed that the company started to partially stop production in November 2019, and orders were gradually transferred to other PCB factories for production. By the end of December, production had been completely stopped. Before the company officially announced its dissolution, there were about 250 employees. Fortunately, the employees' salaries have been settled.
As for the economic compensation, after negotiation between the two parties, the final payment will be made in accordance with the statutory 50%. According to the negotiated conditions, the "50% off" economic compensation will be paid in two installments. The first installment is 20%, which will be paid before the Spring Festival in 2020; the remaining 30% will be settled before April 1, 2020. clear. Unexpectedly, the company issued a dissolution notice in early March 2020.
Public information shows that the company is committed to providing high-quality 2-16 layers of high-precision rigid circuit boards, which are widely used in automobiles, communication equipment, multimedia digital electronics, home appliances and other fields.
Regarding the issue of the PCB company’s previous payment owed to suppliers and employees’ unemployment compensation, the company stated in the "Dissolution Notice" that in view of the company’s temporary inability to pay due debts and employee economic compensation, the liquidation team’s proposal has obtained effective claims The creditors (including employees) of the document applied to the People's Court of Nansha District, Guangzhou City for bankruptcy of the company.