DEALS
Zhong Lun Assisted Deutsche Bank and Other Creditors to Reach Settlement over a Syndicated Loan Dispute
Zhong Lun Assisted Deutsche Bank and Other Creditors to Reach Settlement over a Syndicated Loan Dispute
Recently, Zhong Lun Law Firm has assisted Deutsche Bank, Goldman Sachs and other creditors to reach settlement for a syndicated loan dispute over USD 600 million with a real estate company in Dalian, China.
This case involved a syndicated loan of USD 547 million provided by 16 creditors, including Deutsche Bank and Goldman Sachs, to the real estate company and its affiliates. Up to October 2013, the total debt under the facility agreement was USD 612 million. Due to the default of the debtor, the creditors launched legal actions both offshore and onshore, in an attempt to recover the principal and interest of the loan. Zhong Lun initiated a series of takeover actions and lawsuits against the debtors’ onshore assets on behalf of the creditors, assisting the creditors in eventually reaching settlement with the debtor. This case raises the importance of how to improve the mechanism for protecting the rights of minority lenders in the transaction documents.
Zhong Lun partner Mr. Decai ZHANG led the project, with support from non-equity partner Ms. Bing WANG, and associates Ms. Qiuqin WAN, Ms. Nelly ZHANG, Mr. Jie ZHOU and Ms. Tianran CHEN.
