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The case is the first special liquidation of FIEs in Shanghai. The company was a cooperative joint venture, that the Chinese party provided rights of house use as conditions for cooperation, whilst the foreign party provided capital and facilities as conditions, and the foreign party was responsible for the operation and management, whilst the Chinese party was assured guaranteed minimum profits. Unfortunately, the two parties had endless divergent opinions shortly after cooperation until the moment they submit the issue to the arbitration. The award decided a termination of the cooperation contract and a start of liquidation. After rounds of negotiations, the two parties could not reach agreements on several issues in the liquidation, so the special liquidation was applied. With the approval of Shanghai Foreign Investment Commission, the Foreign Economic Commission of Hongkou District organizes a special liquidation committee. The committee appoints Mr. Chambers Yang and some other experts as participators in the event.
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