Reflection on the Truth Behind the Seizure of Nanshan High-Tech - A of 20 Million vs. 4 Billion

Author: Zhao Qi
Publisher:
Publish Date: 2006-09-01
Features:
■ On June 23rd morning, Guangzhou Southern High-Tech was holding an emergency board meeting at the Guangzhou Economic Development Zone to discuss the restructuring plan of Southern High-Tech. At this time, Southern High-Tech was like the Balkans before World War I—any slight mistake could ignite a powder keg. The Changsha Intermediate People's Court, Civil Second Tribunal, sent two female judges, Zhan Zhiliang and Chen Jia, along with clerk Lu Qing, and a staff member and lawyer from Changsha Commercial Bank, totaling five people, to seal off Southern High-Tech's warehouse storing mobile phone products. This sudden seizure was because Changsha Commercial Bank's Ruichang Branch, after failing to collect payments multiple times, had applied for a preservation order with the Changsha Intermediate People's Court. According to legal procedures, the court sealed off Southern High-Tech's factory buildings, production equipment, and other fixed assets worth 25.5 million yuan, equivalent to the overdue payments. After placing the seals on the warehouse, the enforcement judges from the Changsha Intermediate People's Court communicated with the leadership of Southern High-Tech. The court agreed to give Southern High-Tech 24 hours to arrange the funds, and if the money was paid within that period, they would lift the seizure. After the communication, the judges returned to their hotel. At this point, Southern High-Tech fully realized the impact of the seizure on them. Paying back over 20 million yuan now was like a fantasy, as there were already over ten economic lawsuits filed, judged, and awaiting execution against Southern High-Tech at the Guangzhou Economic Development Zone Court. To prevent further seizures by courts in other regions, the Guangzhou Economic Development Zone Court had already implemented a protective seizure on Southern High-Tech. That same evening, the court sealed off Southern High-Tech's production workshop, equipment, raw material warehouse, and finance room. Meanwhile, some employees of Southern High-Tech's headquarters were transferring part of the company's assets outside. However, during the transfer, around 10:00 PM that same evening, the staff member and lawyer from Changsha Commercial Bank who accompanied the judges from the Changsha Intermediate People's Court arrived at Southern High-Tech, only to find the company in the midst of a large asset transfer. They immediately returned to report to the judges. The next morning, when the judges from the Changsha Intermediate People's Court arrived again, they found that the production workshop and equipment were all sealed with stamps from the Guangzhou Economic Development Zone Court. Tensions arose at that moment. Although some Southern High-Tech management personnel explained to the enforcement officers from the Changsha Intermediate People's Court that the involved amount was only over 20 million yuan and should not lead to the seizure of the entire factory worth billions, the enforcement officers replied, "I don’t know how much you are worth!" At that time, the enforcement judges from the Changsha Intermediate People's Court believed that Southern High-Tech was deliberately evading them. Enraged, they seized all areas that the Guangzhou Economic Development Zone Court had not sealed, including elevators, all offices, and even the finance room and Chen Zhen's office. As a result, no one from Southern High-Tech headquarters could enter the office building. The entire company, including senior leaders, watched the seals from the Changsha court firmly attached to their office doors, yet they were powerless. Among them was a part of...