Zhong Lun builds historic case with debt overhaul

Zhong Lun builds historic case with debt overhaul

China’s first case in which the debt risk of 25 construction companies was resolved by out-of-court debt restructuring procedures saw Zhong Lun Law Firm advising the two main groups, subsidiaries and other owners.

Nanjing Construction Industry Group and Nanjing Construction Group, along with subsidiaries and indirect holding companies, were advised on merger and reorganisation by Zhong Lun.

The case was the first of its type in China to successfully resolve the debt risk of large construction enterprises by out-of-court debt restructuring, pre-restructuring and judicial restructuring. It was also the first case in Nanjing to see pre-restructuring procedures applied.

The project was led by partner Tang Jianhui, with support from partners Li Qiang and Wang Haitao, and non-equity partners Ding Ke, Xiao Zhiqiang, Tian Juan and several assistants.

The 25 restructured companies are all large private construction enterprises in Jiangsu Province with debt amounting to RMB130 billion, which had an effect on more than 100 financial institutions and 2,000-plus creditors across the country.