DEALS
Zhong Lun Acts as Administrator for Bankruptcy and Reorganization of *ST Chuang Zhi
Zhong Lun Acts as Administrator for Bankruptcy and Reorganization of *ST Chuang Zhi
On May 27, 2011, the Intermediate People’s Court of Shenzhen approved the restructuring plan and ordered the termination of the restructuring process of *ST Chuang Zhi. Zhonglun Law Firm, as the bankruptcy Administrator for *ST Chuang Zhi, advised on the restructuring process.
*ST Chuang Zhi (000787) was a limited liability company listed on the A-share market of Shenzhen Stock Exchange. Due to heavy debt and lack of major businesses, *ST Chuang Zhi suffered consecutive losses from 2004 to 2006 and its listing was temporarily suspended by Shenzhen Stock Exchange on May 24, 2007. At that time, *ST Chuang Zhi had ceased operation and was on the verge of delisting. On August 12, 2010, the ntermediate People’s Court of Shenzhen accepted its restructuring application. On August 23, 2010, the Court ordered the restructuring and designated Zhong Lun Law Firm Shenzhen office as the Administrator and Lawyer Xu Shengfeng as the responsible person for the Administrator. The Court further ruled that the restructuring should be implemented in the Administrator-management mode, whereby the Administrator should fully take control of the restructured company and draft and review the restructuring proposal.
Under the guidance of the Court, Zhong Lun duly performed its duty and finished assets investigation, claims review, analysis of debt-paying ability and the necessary communication and liaison work for the restructuring proposal. The diligent and creative work of Zhong Lun contributed to the approval of the restructuring proposal of *ST Chuang Zhi at both the creditors’ and investors’ meeting and the Court approved the restructuring plan and ordered the termination of the restructuring process of *ST Chuang Zhi. Because of the restructuring, the ordinary creditors got paid at a higher rate than that in insolvency liquidation, *ST Chuang Zhi also resume its operation and profitability, turning its shares into truly high-quality assets. Now, the restructuring of *ST Chuang Zhi is in the enforcement phase and Zhong Lun as the Administrator will continue to perform its supervision duty pursuant to law.
Partner Xu Shengfeng is fully in charge of this project, and other professionals included associates Shen Feng, Pang Xiaochun and Zhuang Zeman.
