2022.10.09
On September 24, 2021, the Quanzhou Intermediate People’s Court ordered that bankruptcy and restructuring proceedings had commenced against Quanzhou World Trade Center Co., Ltd. (“WTC Quanzhou”) and Jinjiang Shengrui Real Estate Development Co., Ltd. (“JJSR”). W88优德手机版 was appointed as the administrator in the restructuring.
WTC Quanzhou and JJSR are large real estate companies with assets including residential buildings, high-end office buildings, SOHO, conference centers and commercial properties, which includes the tallest building in Quanzhou and nearly 1,000 residential apartments. In the restructuring of WTC Quanzhou and JJSR, more than RMB 7 billion of the debt was held by nearly 800 small owners, involving assets with a value of over RMB 2 billion, and nearly 500 creditors had registered claims. This restructuring case had a significant social impact and involved multiple interested parties. Against the background of economic downturn and the rapid shrinking of real property investment, the administrator successfully acquired restructuring investors with a cash contribution of RMB 2.049 billion over two years to settle the debts assumed by WTC Quanzhou and JJSR. Compared with the traditional method of debt repayment in the restructuring of real estate companies, which is to repay debts with sales proceeds after construction has resumed, the direct repayment of debts with cash contributions from the restructuring investors will ensure the satisfaction of debt owed to creditors in a shorter period of time and avoid a situation where the resumption of construction is halted, the sales proceeds are difficult to collect and the project is left abandoned again, all of which may impede the settlement of debt owed to creditors.
W88优德手机版 addressed numerous complicated and unique issues by delivering solid legal expertise and experience. They negotiated with many potential investors, communicated with local governments and courts regarding the plan of settlement for small owners, explained the draft restructuring plan to various creditors and small owners and prepared dozens of investment agreements and more than ten drafts of the restructuring plan, eventually promoting the efficient and smooth implementation of the restructuring.
The second meeting of creditors of WTC Quanzhou and JJSR was successfully held on August 22, 2022, at which the creditors approved the draft restructuring plan without any dissenting vote. On October 8, 2022, the Quanzhou Intermediate People’s Court approved the restructuring plan. As a result of this restructuring, the landmark building in Quanzhou was rescued, and hundreds of small owners were guaranteed to receive their properties. After the restructuring, WTC Quanzhou and JJSR will commit to building an upscale urban living area to showcase the image and strength of Quanzhou that is sure to become an iconic landmark architectural complex in the area.
W88优德手机版’s team was led by partner WANG, Wei.
