Our client is a large-scale Chinese company, engaged in cereal and oil business. After supplying to the Shenzhen company for one year, it had not received nearly 2 million yuan in payment. The debtor, Evergrande Group, has a very serious debt problem. 

Considering that the debtor was in poor operation, it was likely that even if we win the lawsuit, we could not be able to deduct money from Evergrande Group,.

Near the opening of the trial, the defendant Evergrande Company took the initiative to contact us to request a settlement, but the amount they wanted to return was very harsh. In order to maximize the interests of our customers, we believed that the best plan is to reconcile with the counter-party, and let the Shenzhen company return the payment monthly.

To this end, we conducted nearly 30 rounds of communication with our client, the Shenzhen company, and the judge. The whole process of communication was very difficult, because the plaintiffs and defendants were both large companies. Every decision required the approval of leaders at all levels. Moreover, we needed to make a detailed record of the entire communication progress and content so that it could be fed back to the inspection department of our customers.

Under the coordination of more than a dozen phone calls every day for a week, the two sides finally reached a preliminary mediation agreement. We sent the mediation agreement to the judge in advance, and the judge would modify the contents of the mediation agreement in case that the court could not enforce them.

During this period, there was a Controversial point between two sides. The counter-party asked us to unfreeze their property, but we did not agree. We were very worried that once we froze that the counter-party would not perform. At that time, we were helpless if the other party’s counter-party’s property was deducted by others.

After several rounds of communication, Evergrande still insisted that we unfreeze the property, but they were willing to make a concession that we could apply for the unfreezing after they had repaid the loan for three periods. However, our clients had always been worried about the unfreezing risks they would take so that they was reluctant to accept this concession.
In order to prevent the failure of mediation, we have also made full preparations for the trial.

At the trial today, the two sides were still deadlocked on this issue. The judge called me out and told me that he still had 30,000 verdicts in hand. As for our case, it had to wait for all the frontal verdicts. We have another case, also in this court, that has been waiting for almost ten months and the verdict has not come out. If the defendant appeals during this period, we will have to wait for nearly a year for the second instance. If we don’t get the verdict, we can’t apply for enforcement, which means that we can’t deduct the counter-party’s property for nearly two years.

So, I communicated with our client again, the risk point prompted by the judge was conveyed and analyzed to the customer. The worst result of mediating is that the counter-party refuse to repay after the forth period. So we can immediately apply for the execution of the deduction and in this 3 months there is little probability that someone queued up before us to freeze the property . In addition, even if the other party does not repay the fourth period, we have also received the repayment amount of about 300,000 yuan for three periods. We also recovered some of our losses.

After discussion in an internal meeting, our client decided to adopt the final mediation plan.

In the end, in the presence of the judge, we reached a mediation plan that would ensure that our customers would recover more of the payment. Moreover, this plan was stamped with the official seal of the court and approved by the court. If any of the installments of Evergrande Company are not paid on time, we can apply to the court immediately to deduct its property.

Because this case was concluded through mediation, the court only charged half of the litigation costs.

After the trial, we helped our client to apply for a court refund of 15,000 yuan in litigation costs. Moreover, we will always track the repayment situation of Evergrande Company and give timely feedback to our client.