Han's Loan Dispute Mediation Case

Company A, established by Mr. Han, signed a cooperation agreement with Company B in 1995. Company B invested over 300,000 yuan in Company A to collaborate on the decoration materials business, but Company B did not participate in the operation and only received a fixed profit each month. Later, Company B sued to demand the return of the principal of 300,000 yuan and profits of over 400,000 yuan. This lawyer pointed out to the plaintiff that this agreement, which was named as cooperation but was essentially a loan, violated financial laws and regulations, and according to the rules, the profits would be confiscated. As a result, the plaintiff agreed to abandon the request for the return of profits, and both parties reached a willingness to mediate, with Mr. Han agreeing to repay the principal to the plaintiff in 26 installments.