R&P Prevent Debtor from Evading Enforcement of Arbitration Award
By Nico Min
R&P China Lawyers recently acted for a foreign corporate client in successfully preventing a debtor company in Shanghai from proceeding with deregistration while a valid arbitral award remained outstanding.
The case involved a foreign creditor seeking to protect its rights under an international arbitration award rendered outside of China. When the debtor company attempted to dissolve without settling its confirmed obligations, our team promptly intervened and took necessary legal steps to ensure that the company's deregistration would be suspended until the debt issue was properly resolved.
As a result, the relevant authority has confirmed that the debtor company is temporarily unable to complete deregistration or reduce its registered capital. The client can now consider further enforcement measures in China to secure recovery under the arbitral award.
For companies that have obtained or are about to obtain a foreign arbitral award or court judgment, it is advisable to seek early advice from experienced Chinese lawyers, rather than simply waiting for recognition and enforcement proceedings — which can be lengthy and uncertain.
For assistance with enforcement, debt recovery, or corporate compliance in China, please contact [email protected] or reach out to your trusted contact at R&P.