On May 13–14, the Chambers High-Quality Development Forum 2026-Beijing was held at the InterContinental Beijing Sanlitun. Under the theme “Seizing Opportunities in Complex Legal Environments and Preserving Competitive Advantage Amid Uncertainty”, the forum drew general counsel (GC), legal heads, industry experts, and leading attorneys from both China and abroad for in-depth discussions on addressing legal challenges and driving high-quality growth under current economic conditions. Peifeng Liu, Director of the Professional Committee of Bankruptcy, Restructuring and Liquidation Law of Zhonglun W&D Law Firm, along with Deputy Directors Xuelian Zhang and Jianying Zhao, Secretary-General Bin Jiang, and Deputy Secretary-General Xiaoxia Luan were invited to attend the event. The team engaged in profound exchanges with guests across various sectors and shared cutting-edge practical insights.

During the forum, our team took an active part in panel discussions and networking sessions, exchanging views with peers on cutting-edge issues in bankruptcy, restructuring and liquidation. In the parallel session on “Theory and Practice of Out-of-Court Restructuring”, the team drew on recent major cases to offer a clear analysis of the core characteristics and value of out-of-court restructuring. They explored practical solutions for distressed enterprises to achieve revitalization through out-of-court negotiation and restructuring, analyzed key legal issues concerning the transition among out-of-court restructuring, pre-packaged restructuring, and bankruptcy restructuring proceedings, and offered practical guidance for corporate debt resolution. The team also engaged in deep discussions with corporate general counsels to gain insight into current needs around debt management and risk mitigation—exploring how specialized legal services can help companies manage risks and seize growth opportunities in a complex environment.

Attorney Peifeng Liu opened by outlining the “Characteristics and Value of Out-of-Court Restructuring”, identifying three defining strengths: procedural flexibility, strong confidentiality, and contractual effect.

Flexibility: Free from rigid judicial approvals, the process is driven by party negotiations, enabling swift initiation and early intervention.

Confidentiality: The private nature of the process protects corporate reputation, client relationships, and core asset values, averting negative spillover effect.

Contractual Effect: Binding only on contracting parties, it allows tailored solutions that preserve existing shareholder equity without the voting ratio restrictions of all creditors.

As a result, out-of-court restructuring overcomes key drawbacks of judicial proceedings—lengthy timelines, high costs, and asset depreciation. It typically takes one-third the time, incurs no significant court fees, and keeps the debtor in control, preventing operational disruption and talent attrition. Many companies have successfully turned around through this route. Globally, it has become a mainstream approach; in China, institutional frameworks are being refined to build a seamless approach of “efficient negotiation, judicial confirmation, and risk mitigation”, making out-of-court restructuring as one of the most effective early-stage approaches for distressed enterprises.

Attorney Xuelian Zhang spoke on the “Functions and Procedural Integration of Out-of-Court Restructuring, Pre-packaged Restructuring, and Bankruptcy Restructuring”, comparing and linking the three procedures across two dimensions:

Out-of-Court Restructuring: A market-driven negotiation mechanism based on party autonomy, often facilitated by judicial authorities or industry associations. It offers flexibility, low cost, and confidentiality—but lacks statutory enforcement and requires unanimous creditor consent.

Pre-packaged Restructuring: A hybrid model bridging out-of-court flexibility with judicial backing. It binds dissenting creditors through court confirmation while preserving the agility of out-of-court negotiations. However, unless local rules provide otherwise, it does not automatically trigger a stay or comprehensive takeover, leaving room for holdout creditor issues.

Bankruptcy Restructuring: A court-led statutory process backed by public enforcement. Through a court-approved reorganization plan, it restructures debt, recovers assets, and brings in strategic investors. By balancing stakeholder interests, it effectively breaks deadlocks that out-of-court or Pre-packaged restructuring efforts cannot resolve.

Restructuring centers across multiple jurisdictions now have established cooperation mechanisms with courts, enabling smooth transitions between the three procedures. Once out-of-court restructuring secures consensus from key investors and creditors, it can transition seamlessly into Pre-packaged restructuring or directly into bankruptcy restructuring—substantially boosting the efficiency and success rate of distressed enterprise rescues.

Attorney Xiaoxia Luan took on “The Roles and Functions of Attorneys in Out-of-Court Restructuring”, highlighting the multifaceted role attorneys play for different stakeholders:

For Debtors: Legal analysis and restructuring plan design

For Creditors: Claim filing/verification and implementation monitoring

For Investors: Due diligence and transaction structuring

Restructuring Centers: Advisory services for multi-party negotiation and resourceintegration.

Moreover, out-of-court restructuring attorneys fulfill a tripartite function as legal advisors, project managers, and commercial facilitators. They ensure legal compliance and due diligence, drive project advancement, and design commercially viable structures for win-win outcomes. These three roles are interdependent and progressive, together defining the full spectrum of restructuring attorney’s functions.

Attorney Jianying Zhao closed with a case study showing how distressed real estate enterprises can achieve successful turnarounds through the combination of out-of-court and judicial restructuring. In complex cases, the team starts by accurately classifying claims by type and amount, then conducts multiple rounds of out-of-court negotiations and adjustments on resolution mechanism to secure endorsement from key creditors. Meanwhile, the team brings in financial and industrial investors to form joint investment consortia. Third-party institutions are engaged to conduct objective valuations of existing assets and projected future revenues—enabling quantification of claim distributions and expected investor returns during the out-of-court phase. This process lays the groundwork for restructuring negotiations, building preliminary consensus among investors, creditors, and the debtor before court filing. Once substantial consensus is reached, the out-of-court agreement is submitted to the court for formal bankruptcy restructing filing. Upon acceptance, the court issues a bankruptcy restructuring ruling and solidifies the framework within judicial proceedings. This integrated approach of out-of-court coordination and judicial linkage has significantly boosted restructuring efficiency and judicial credibility, while offering replicable, scalable experience for similar distressed enterprise cases.

Chambers and Partners, an internationally renowned legal rating agency, hosts the High-Quality Development Forum as a key platform for legal professionals worldwide to exchange ideas and share experiences on the most pressing issues in in-house legal practice. This year’s agenda featured keynotes and parallel sessions spanning topics such as the evolving GC role, out-of-court restructuring, labor compliance, data governance, private equity buy-back disputes, and equity investment dispute resolution. The forum offered our professional committee a valuable opportunity to engage with industry peers, share hands-on experience, and gain cutting-edge insights that broadened our professional visions.

Senior Partners Xiangyang Wang and Mian Zhang, along with Partners Yunfei Xu, Shengnan Huang, Xijie Sun, and Min Zhou, also attended the forum. Moving forward, Zhonglun W&D will remain client-centered, strengthen its service capabilities, keep pace with industry trends, and deepen cross-sector exchanges and collaboration. The firm is committed to delivering solid legal services to assist clients in addressing complex legal risks and seizing opportunities, while working side-by-side with them for long-term, stable growth and shared high-quality development.