Acted as administrator for the substantive consolidated bankruptcy settlement of Shandong Guanzhou Co., Ltd. and 26 other companies, as part of a debt restructuring of a nationally recognized leading enterprise, with the objective of maintaining continuity of the existing management team

Served as lead legal counsel for Xiamen C&D Group Co., Ltd. (the reorganization investor) in the consolidated reorganization of Yanggu Xiangguang Copper Co., Ltd. (“Yanggu”) and 18 other companies. The proceedings involved liabilities totaling approximately CNY 60 billion and centered on Yanggu, China’s second-largest private copper enterprise and the world’s largest single-system smelting facility, renowned for pioneering “flash smelting” and “flash converting” technologies. Severely impacted by COVID-19, declining cathode copper production, and contracted copper trading volumes, the company experienced persistent bank credit compression and escalating liquidity risks that ultimately precipitated widespread debt payment defaults, prompting Yanggu County People’s Court to order a substantive consolidated reorganization on July 14, 2022. The case was highly complex, characterized by a web of affiliated entities, extensive industrial diversity, massive debt scale, entrenched legacy issues, and a broad stakeholder landscape with multifaceted interests. As the reorganization advisor for the investor, the team conducted exhaustive due diligence across the entire reorganization scope, meticulously analyzing asset compositions, debt structures, and intricate industrial conditions. The team’s full engagement in investment proposal design and investor selection processes strategically positioned Xiamen C&D Group to secure the investment amid intense competitive pressures, ultimately emerging successful in a high-stakes restructuring environment. The case was shortlisted for the “Best Deal Award” at the IFLR1000 China Awards 2024 announced on September 20, 2024, and won the China Business Law Journal’s 2024 Outstanding Deal Award.

Acted as lead administrator in the bankruptcy reorganization case of Shandong Jinsheng Non-ferrous Metals Group Co., Ltd. (“Jinsheng Group”) and four other companies, which transitioned to a successful settlement. The case involved liabilities of approximately CNY 12 billion, marking the first successful conversion from bankruptcy reorganization to settlement in Shandong Province and a rare occurrence nationwide. During the proceedings, the administrator faced several significant challenges: severe cross-guarantee exposure, difficulties in attracting investors, and substantial industry-wide implications. To ensure procedural transparency and unlock the debtor’s market value, the court supervised a stalking horse bidding process. A prospective investor established a floor price through an initial bid, creating a competitive baseline that other bidders were required to exceed, thereby maximizing asset recovery and creditor protection. In parallel, the administrators engaged extensively with creditors, investors, and other stakeholders, facilitating dialogue to understand their competing interests and develop mutually acceptable solutions. The case of Jinsheng Group and the four other companies demonstrates an innovative application of bankruptcy procedural conversion. The process from filing acceptance to successful settlement was completed in merely five months, demonstrating significant gains in both efficiency and quality of execution. The settlement mechanism systematically addressed the debt crisis, maximizing creditor protection while preserving the enterprise’s going-concern value and viability. As such, this approach offers a valuable blueprint for addressing future debt crises in large private sector organizations. It highlights effective strategies for protecting business entities and existing industries while successfully dismantling hazardous cross-guarantee networks. The case was recognized as a finalist for the “Best Deal Award” at the 2024 IFLR1000 China Awards announced on September 20, 2024.

Advised on the consolidated bankruptcy reorganization of Qixing Group Co., Ltd. and 26 other companies, involving CNY 15 billion and representing one of the earliest examples of consolidated reorganization

Advised on the consolidated reorganization of Shandong Guangyuan Energy-saving Materials Co., Ltd. and four other companies, involving CNY 4 billion

Advised on the consolidated reorganization of Yangxin Eurasia Group Co., Ltd. and 22 other companies, involving CNY 2.6 billion

Advised on the bankruptcy liquidation of Shandong Huicheng Chemical Co. Ltd.

Advised on the bankruptcy settlement of Xiwang Group Co., Ltd., with the entire process being completed within 41 days. The case is the first in China where large debt defaults were innovatively resolved through settlement and got selected as one of the ten typical bankruptcy cases of Shandong province

Advised on the consolidated bankruptcy settlement of Yuhuang Group and 31 other companies, involving CNY 42 billion of debt and completed in 39 days. The case is included as one of the typical bankruptcy cases of Shandong province and so far one of the largest bankruptcy settlement cases in China

Advised on the consolidated bankruptcy reorganization of Shandong Jinsheng Non-ferrous Group Co., Ltd. and 4 other companies, involving more than CNY 10 billion of debt. The case entailed coordination of local key guarantee providers and had a highly positive impact on the local job market and economic development

Advised on the debt restructuring of Shandong Changhua Machinery Technology Co., Ltd.

Advised on the debt restructuring of Shandong Shouxin High Molecular Materials Co., Ltd.

Advised on the debt restructuring of Kingenta Ecological Engineering Group Co., Ltd.

Advised on the bankruptcy reorganization of Yantai Taihai Group Co., Ltd.

Advised on the bankruptcy reorganization of Yantai Taihai Manoir Nuclear Equipment Co., Ltd.

Served as a member of the liquidation team in the consolidated reorganization of Huasheng Jiangquan Group (“Huasheng”) and 47 other companies. The case involved liabilities totaling CNY 26 billion and affected over 8,000 employees. Founded in 1989, Huasheng has emerged as a flagship industrial conglomerate in Linyi City, with diverse operations spanning steel, ceramics, livestock farming, meat processing, international trade, logistics, real estate, and hospitality. As a leading private enterprise in Shandong Province and nationally, the group’s founder, Wang Tingjiang, has been celebrated by the central government as a model of entrepreneurial success and shared prosperity. Shenquanzhuang Village, dubbed the “first village of Yimeng”, embodies the enduring spirit of hard work, selfless dedication, and collective advancement, and carries forward the Yimeng spirit of the People’s Republic. Given the profound social impact of the case, it required particularly careful handling. As the sole legal representative on the liquidation team, Zhong Lun navigated the entire process, from initial plan design and creditor negotiations to intricate government-court coordination. By implementing a market-oriented bankruptcy procedure with government oversight, court-led execution, and collaborative administrative-judicial engagement, the team successfully addressed the complex social challenges arising from the enterprises’ financial distress. The project achieved a groundbreaking conversion from reorganization to settlement, marking the first instance in China where a large-scale steel enterprise successfully transitioned through such a framework. The settlement agreement was approved smoothly, demonstrating an innovative approach to corporate reorganization. The case was awarded the China Business Law Journal's 2024 Outstanding Deal Award.

Advised on the out-of-court restructuring of Shandong Ruiying Pharmaceutical Group Co., Ltd. and its affiliated companies

Advised on the debt restructuring of Shandong Ruifeng Stainless Steel Co., Ltd. and its affiliated companies

Advised on the bankruptcy reorganization of Jinan Zhonghai Carbon Products Co., Ltd., involving private fundraising and with a total debt amounting to CNY 1.6 billion

Advised on the debt restructuring of Qingdao Jipai Food Supply Chain Management Co., Ltd.

Advised on the debt restructuring of Sino-Ally International Trade Co., Ltd.

Advised on the debt restructuring of Jinan Xinmao New Materials Co., Ltd.

Advised Shandong Jinzhu Group Co., Ltd. on pre-reorganization

Advised Henan Pingdingshan Dongsheng High-tech Industrial Co., Ltd. on bankruptcy pre-reorganization

Advised Qingdao Laigang Steel Structure Co., Ltd. on pre-reorganization

Advised Shandong Laigang Green Construction International Construction Engineering Co., Ltd. on bankruptcy liquidation