Recently, MPLG won another case! On behalf of a Chinese Petroleum Equipment Corporation, the litigation team of MPLG successfully recovered the huge payment from the defendant U.S. company, and all the payment has been returned to the account.
In May 2022, MPLG received a report from one of our clients, a Chinese oil company. The client's debtor is located in Houston, USA, and has defaulted in payment of millions of dollars since 2021. MPLG's commercial litigation task force that was on this case was composed of senior lawyer Mr. Hongbin Bao. After sufficient pre-litigation preparations and the gathering of evidence, including contracts, orders, export tax bills, delivery notes, and relevant witnesses and evidence, MPLG formulated the steps regarding the pre-litigation conversation with the U.S. company and the negotiation during litigation.
MPLG's creditors rights attorney team decided to communicate with the U.S. company in this case in a non-litigation manner first, and claimed the creditor's rights, and demanded payments. After careful analysis, MPLG's litigation team presented reasonable and favorable evidence to the U.S. company. After repeated conversations and negotiations, the two parties finally reached a settlement. During the tense but orderly negotiation process, which was less than 5 months, the U.S. company remitted all the payments to our client's company account. Regarding the recovery of payment, MOSAIC law firm once again won a complete victory, not only regaining the receivable payment for our client but also saving our client the cost of lawsuits through the settlement agreement between the client and the U.S. company. The client highly appreciates MPLG's services.
1. In this type of case, one should accurately analyze the financial situation of the debtor, and carefully adopt active and effective legal measures. Litigation and arbitration for such debtor companies, which are usually in poor financial conditions, will cause the creditor to spend large sums of money on legal proceedings without achieving any actual recovery results, and may also accelerate the bankruptcy or closure of the debtor company, which will result in a complete loss of any hope in recovering the debt.
2. One should also strive for a settlement plan between the two parties, as settlement is the best policy. Above all, one should consider not using aggressive legal means to pursue such a debtor company with deteriorating financial conditions, but should continue to pay attention to the development of the case when collecting various evidence, and use effective legal means to force upon the debtor company the psychological sense of an accelerating crisis. At the same time, one should seize the moment when the debtor company's operating conditions improve, and reach a settlement agreement with the debtor through friendly negotiation gestures, for example, reducing or exempting part of the debt, proposing payment in installments.
3. Lay a good foundation for recovery measures. When signing a repayment agreement, one needs to consider formulating agreement and supervision clauses that are suitable for the debtor's actual situation in terms of repayment amount, frequency, and time. Later, after the agreement is reached, one needs to force the debtor to strictly implement the repayment agreement, fulfill the repayment obligation on time, and gradually recover overseas debts and reduce losses through the assistance of international commercial debt collection agencies.
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