On June 23, 2026, the Shanghai Third Intermediate People's Court (Shanghai Intellectual Property Court, Shanghai Railway Transport Intermediate Court) held a press conference for the "Shanghai Bankruptcy Court 2024-2025 Bankruptcy Trial Work White Paper and Typical Cases." At the press conference, the Shanghai Bankruptcy Court released and interpreted 12 typical bankruptcy trial cases for 2025. The reorganization case of "Shanghai Yi [X] Education Technology Co., Ltd. (hereinafter referred to as 'Company Yi [X]')," in which Llinks acted as the administrator, was successfully selected. Highlighted for "continuing to perform intellectual property licensing contracts to revitalize artificial intelligence educational assets," this case was recognized as a typical example of promoting the industrial transformation of education and training enterprises and accelerating the transition from old to new growth drivers through market-oriented and law-based reorganization.

Case Summary and Highlights:

• Continuing to Perform IP Licensing Contracts to Promote the Preservation and Appreciation of Bankruptcy Assets: Prior to the acceptance of the reorganization, Company Yi [X] signed intellectual property licensing contracts, authorizing a certain smart technology company to use its intellectual property for the development and sale of smart learning machines. Following the acceptance of the reorganization, the administrator, pursuant to Article 18 of the Enterprise Bankruptcy Law, decided to continue the performance of the contracts. This not only prevented the devaluation of intellectual property (including over 60 registered trademarks, over 200 patents, over 400 copyrights of works, and over 100 software copyrights) due to idleness, but also helped protect the licensee's transaction expectations and development achievements.

• Introducing a Reorganization Investor and Formulating Diversified Settlement Plans to Assist Creditors in Business Transformation: Through public recruitment by the administrator, the aforementioned smart technology company became the reorganization investor. Considering the actual situation that nearly 2,000 creditors had already transitioned from off-campus tutoring businesses to smart learning machine sales businesses, the administrator designed three settlement options—"cash, virtual assets, and rights to equity returns"—in the draft reorganization plan for ordinary creditors to choose from. Notably, creditors selecting the virtual asset settlement plan could convert their bankruptcy claims into a quota for picking up goods, offsetting the payment for purchasing smart learning machines from the reorganization investor, thereby seeking future development opportunities in the AI education industry.

• High-Proportion Voting Approval, Properly Resolving Over RMB 1.2 Billion in Massive Debts: Facing the predicament of external debts amounting to approximately RMB 1.2 billion and severe insolvency, the administrator formulated a draft reorganization plan based on the reorganization investment plan. In December 2024, the draft reorganization plan was submitted to the creditors' meeting for voting, and both the creditors' group and the contributors' group approved it by a high proportion. The Shanghai Third Intermediate People's Court ruled to approve the reorganization plan of Company Yi [X] in January 2025.

The release of typical cases by the Shanghai Bankruptcy Court aims to systematically present frontier explorations of bankruptcy trials serving high-quality development. This selection fully demonstrates Llinks' profound professional knowledge and outstanding practical experience in the field of bankruptcy reorganization practice. Moving forward, Llinks will continue to deeply engage in the fields of bankruptcy reorganization and debt restructuring, uphold professionalism and innovation, and leverage its excellent practical capabilities to assist enterprises in achieving value reconstruction. Llinks will consistently provide clients and partners with more forward-looking and implementable solutions, contributing further professional strength to the improvement of market-oriented, law-based bankruptcy systems and the optimization of the business environment.

Llinks Engagement Team

Amy Ren, Partner

Shawn Xu, Partner

Bryant Ren, Associate