Docvit News | The Launch Ceremony of New Product Line of Docvit Bond Default Dispute Resolution was successfully held

Source:   Time: 2019-08-19 11:31:16  Author:

On the afternoon of August 17, 2019, the Launch Ceremony of New Product Line of Docvit Bond Default Dispute Resolution & Seminar on Bond Default Disposal and Bond Market Development Under Economic New Normal, the third meeting of the new product line of Docvit series, was successfully held. Mr. GUO Guowei, senior partner and member of the Management Committee of Beijing Xinghua Certified Public Accountants Firm, Ms. PENG Wenjing, former employee of China Merchants Securities, and lawyer SHI Guanghu, senior partner of Beijing Docvit Law Firm, attended the launch ceremony. Senior executives and in-house counsels from financial and investment institutions attended the launch ceremony, and made in-depth discussion on the development of bond default market under the situation of strong regulation.  

At the conference, Ms. PENG Wenjing delivered a keynote speech titled Demands of Different Roles in Bond Default. Ms. PENG first gave a brief introduction to the development of credit bonds and the history of bond default in China. Combined with the latest data, she made statistics on the amount of default in 2015-2019. The conclusion shows that in the past one or two years, the number of bonds with maturity extension and default due to triggering cross clauses is increasing day by day. In view of the status quo of the bond default market, Ms. PENG made an analysis and interpretation of the demands of different roles in bond default events from the perspectives of regulation, principal underwriter and trustee, debt bank, non-banking institution of bondholders, holder meeting, guarantor and combined with relevant cases. 

Later, Mr. GUO Guowei, senior partner and member of the Management Committee of Beijing Xinghua Certified Public Accountants Firm, and lawyer SHI Guanghu, senior partner of Beijing Docvit Law Firm, jointly unveiled the new product line of Docvit bond default dispute resolution. And the new product line of Docvit bond default dispute resolution waas officially launched. 

After the launch ceremony, lawyer SHI delivered a keynote speech on Hot Issues about Dispute Resolution under the Wave of Bond Default. Lawyer SHI first introduced the status quo of bond defaults. He said that the current bond default market is characterized by "sharp increase in the number and amount of bond defaults, rise in new bond defaults in the real estate industry, increase in the proportion of private enterprise defaults, significant increase in bond defaults of listed companies, and occurrence of bond defaults in all regions". Subsequently, lawyer SHI made an in-depth interpretation of the cases in terms of the identification of and difficulties in cross default of the issuer, the comparative advantages of the bankruptcy reorganization of the issuer, the resolution of the obstacles to the prosecution qualification of the bondholders, the dilemma of the trustee's qualification of prosecution against the subject, the conflicts of interest and response of the trustee, and the multiple legal liability disputes of the underwriter. 

Mr. GUO Guowei shared his exclusive opinions on Discussion on the Risk of Bond Default. He analyzed the reasons for default from the aspects of macroeconomic condition, national financial policy, enterprise operation condition and rapid expansion based on the general situation of bond defaults in recent years. In addition, Mr. Guo expressed his professional views on the financial requirements and audit points of bond issuance, and put forward suggestions on how to prevent investment risks from his own experience. 

At the conference, participants had in-depth exchanges on issues such as "special relief for bond default of listed companies", "responsibility bearing and interest conflict between underwriters and trustees under bond default", "bond default and debt restructuring", "game between financial institutions and SOEs in bond default" and "intersection of criminal law and civil law in bond default disputes". 

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Beijing Docvit Law Firm (Docvit in short), which was established in 2003, is one of the few earliest law firms instituted as a corporation rather than partnership in China. Aimed at building a high quality law firm with professional competence, Docvit fostered innovation under its unique system of operating as a large-scale corporation. Benefited with its core-competitiveness, such as international insights and full IT application management mode, to name some of them, Docvit pursued cross-border development and established an image of high-end brand in a industrialized market. In 2015, Docvit was ushered into a “3.0 era” of moderate-scale development, which witnessed the gradual formation of nation-wide and world-wide layout with the start-up of branch offices in Tianjin, Jinan, Shenzhen, Shanghai, Chengdu, Taiyuan, Hong Kong, London and other places in succession.
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