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Zhong Lun Helps GL Asia Win Retrial Case before China Supreme People’s Court
Zhong Lun Helps GL Asia Win Retrial Case before China Supreme People’s Court
Zhong Lun Law Firm has recently won a retrial case before the Supreme People’s Court and successfully recovered over RMB60 million for GL Asia Mauritius Ⅱ Ltd (hereinafter referred to as “GL Asia") , an offshore company registered in Mauritius, through the enforcement procedure.
GL Asia acquired a RMB60 million non-performing loan from the Oriental Asset Management Company in 2007. The debtor of the loan has gone into insolvency. The only way to recover the loan is to enforce the guarantee issued by Liaoning Baocheng Real Estate Development Co., Ltd., a subsidiary of Hong Kong listed Coastal Greenland Limited (stock code: 1124). However, Baocheng Real Estate contended that its guarantee is subject to the creditor’s promise to finance for one of its development projects, which the creditor failed to keep, and hence it has no obligation to repay the loan for the debtor. This was upheld by the Liaoning Province Higher People’s Court, making the loan worth nothing.
Zhong Lun team, led by partners Zhang Decai, Liu Yumin and comprising associates Xia Huimin and Li Zhanbo, was entrusted by GL Asia to appeal the case to China’s Supreme People’s Court. Drawing on our huge amount of experience in evidence gathering and representation before the Supreme Court, we successfully convinced the court to dismiss Baocheng’s claims and held it liable for the loan. Prior to the release of this news, we have recovered RMB66.5 million for our client through enforcement procedure.
The case also involved complicated issues in connection with cross-border transactions of non-performing assets.
GL Asia is run by a US hedge fund management company which is one of the largest investors in China’s non-performing assets. To date, Zhong Lun has represented the fund in several litigation and bankruptcy matters.
