A financial institution engaged Li Shu’s team after RMB 200 million in domestic factoring financing became overdue. It sought payment of principal and penalty interest, recognition of its security priority and subsequent enforcement.
The team reviewed the trade finance facility, receivables assignment, guarantee arrangements and mortgages over machinery and equipment. Its evidence addressed acknowledgement of the assigned receivables, default and the validity of the security and guarantee obligations.
According to YunTing’s account, the court ordered payment of the full principal and applicable penalty interest and recognized the creditor’s priority over the mortgaged equipment. The debt was subsequently recovered through compulsory enforcement.