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Zhong Lun Assists Investor Huafa Technology Group in Successful Reorganization of Founder Technology
Zhong Lun Assists Investor Huafa Technology Group in Successful Reorganization of Founder Technology
Release time：2022-12-28
Voice Announcements
On December 26, 2022, Beijing No. 1 Intermediate People’s Court (“No. 1 Intermediate Court") ruled that the reorganization plan of Founder Technology Group Co., Ltd. (“Founder Technology", stock code: 600601.SH) was completed and terminated Founder Technology’s reorganization procedures. This ruling marked the success of Founder Technology’s reorganization and the rebirth of this established listed company, which was one of the first to be listed at the time when Shanghai Stock Exchange was founded.
Zhong Lun assisted industrial investor Zhuhai Huafa Technology Industrial Group Co., Ltd. (“Huafa Technology Group") in successfully completing its investment in the reorganization of Founder Technology and helped Huafa Technology Group become the controlling shareholder of Founder Technology, with the mandate representing yet another significant milestone in Zhong Lun’s streak of success in providing reorganization investment services in the reorganization of listed companies.
This is an important case deriving from the benchmark case of the bankruptcy and reorganization of Peking University Founder Group Co., Ltd. (“Founder Group"). The case received close attention from regulatory authorities and the public, as not only the reorganization proceedings between Founder Technology and Founder Group required delicate handling and coordination, but there was the need to balance the rights and interests of the creditors of Founder Technology and the rights and interests of medium and small shareholders involved in the relevant misrepresentation cases; on the other hand, as a delisting risk warning had been issued against Founder Technology, the execution of the reorganization plan must be completed by the end of 2022. Thus, the reorganization of Founder Technology was both difficult and time-sensitive.
Zhong Lun has provided the investors with legal services throughout the entire process for the reorganization investment, including legal due diligence investigation, design of reorganization investment scheme, bidding for the appointment of reorganization investor, negotiation of the reorganization investment agreement and reorganization plan as well as assistance in executing the reorganization plan. With its best endeavors to maximize both effectiveness and efficiency of the reorganization, Zhong Lun managed to get the reorganization plan approved at the first creditors’ meeting and assisted investors to complete the reorganization of Founder Technology in only 90 days, which has been widely recognized by the market.
The Zhong Lun team for this project was led by partner Bing Wang and supported by associates Junlin Pu, Chonglin Wang, Zhijian Dong, Haoran Cheng, Yuanyuan Zhang, Ziyu Zeng, Hao Zhang, Chuyue Lin and Yiheng Ding.
