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Zhong Lun Law Firm Assists Hangzhou Yuhang Financial Holding Co., Ltd. in Reorganization
Zhong Lun Law Firm Assists Hangzhou Yuhang Financial Holding Co., Ltd. in Reorganization
On May 24, 2021, the Primary People’s Court of Yuhang District of Hangzhou approved the Reorganization Plan of Hangzhou Yuhang Financial Holding Co., Ltd. (“Yuhang Financial Holding") and ruled on the termination of its reconstruction procedures, putting an end to the case. Upon receiving the ruling, Yuhang Financial Holding held a handover ceremony where the assets and business previously taken over by the bankruptcy administrators were formally returned to the company’s management team, signaling that the reorganization plan was almost completed and the reorganization achieved intended results.
Yuhang Financial Holding is the first financial holding platform in Yuhang District of Hangzhou to be transformed into a mixed-ownership and market-oriented operation. As a diversified and comprehensive local financial service platform, the company provides services in direct investment, asset management, pawning, and guarantee, among others. Its successful reorganization, where the debt risks of affiliated enterprises have been effectively avoided, is a fine example of how debt crises of local financial holding platforms may be mitigated and prevented, and regional financial stability maintained, by giving full play to the reorganization remedy regime. Most notable is the advantage of bankruptcy procedures in clearing up debts of related parties, namely the marshalling of manpower and other resources, which can boost efficiency and reduce costs.
Acting as one of the co-administrators, Zhong Lun Law Firm took the helm of the entire reorganization process and navigated the investors, creditors, and other parties through the design, discussion, and formulation of the reorganization plan. The firm’s service took into account the major concerns of all parties involved and, to the greatest extent possible, achieved a win-win outcome for them. Largely due to Zhong Lun’s efforts, the work of the administrators has been unanimously recognized by the local court and the parties involved. The case was led by equity partner Nafisa Nihmat and non-equity partner Jianqin (Joyce) Wang.
