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Zhong Lun Advises on Non-performing Assets Disposal Project for Baosteel Industry and Trade Co., Ltd. under Baosteel Group
Zhong Lun Advises on Non-performing Assets Disposal Project for Baosteel Industry and Trade Co., Ltd. under Baosteel Group
Release time：2016-12-29
Voice Announcements
Recently, Baosteel Industry and Trade Co., Ltd. under Baosteel Group (“Baosteel Industry and Trade") ended the case of non-performing assets disposal regarding steel storage in YongZhu storehouse, which has undergone for almost four years. Zhang Jinquan, a Shanghai-based partner of Zhong Lun Law Firm, together with his professional team, provided legal service for the project.
This case occurred at the time when “steel trade crisis" broke out and became one of the most important non-performing assets disposal cases in Baosteel Group because of the amount of several hundred million RMB involved. After the case entered into enforcement proceedings, it was suspended for around three years due to its complexity, which involves not only cross of executive power of courts in different regions as Beijing, Shanghai, Fujian and Jiangsu, but benefit distribution conflicts of creditors from central enterprises, state-owned enterprises and banks as well. With lawyer team from ZhongLun intervened, the breakthrough point was located and judicial disposal strategy was applied accordingly, the case was restarted with overall executive power transferred. Within only one year, debt recovery rate of 80% was realized and huge amount of state-owned assets losses were saved in time, it has become a classic case regarding non-performing assets disposal for the client.
