DEALS
Zhong Lun Assists in Successful Establishment of HNA Group Bankruptcy Rehabilitation Specialized Service Trust
Zhong Lun Assists in Successful Establishment of HNA Group Bankruptcy Rehabilitation Specialized Service Trust
According to a post from the WeChat official account of HNA Group dated April 24, 2022, “After the High People’s Court of Hainan Province handed down a ruling approving the rehabilitation plan on October 31, 2021, a consortium consisting of CITIC Trust and Everbright Xinglong Trust has been appointed as trustee for the plan through public selection in accordance with law under the supervision of the court, and the HNA Group Bankruptcy Rehabilitation Specialized Service Trust has been legally established. Meanwhile, HNA Group and other 320 affiliates have completed their substantive consolidation, which has been confirmed by the court."
The HNA Group bankruptcy rehabilitation is so far the largest, most extensive and most complex bankruptcy case with a most significant spillover effect in China, for which a dual trustee model is employed for the first time. The successful establishment of HNA Group Bankruptcy Rehabilitation Specialized Service Trust provides an illuminating precedent for further exploration and implementation of “enterprise bankruptcy trustee service trust", especially against the backdrop of China’s new classification of trusts into three categories, where trusts are directed to their original roles and corresponding transformation.
As the legal advisor for the trustee of HNA Group Bankruptcy Rehabilitation Specialized Service Trust, Zhong Lun provided services for the entire process of the establishment of the trust. The project was led by equity partners Han Hao, Bin Zhou and Xianshi Meng, with non-equity partner Qinxin Yang as the site manager, and the team also included non-equity partner Ruida Li and associate Jing Wan.
