Insolvency & Restructuring

Fangda’s insolvency and restructuring capability dates from the Asian financial crisis of the late 1990s. We are highly regarded for our expertise and involvement in many market-defining transactions. Clients choose us for our technical expertise and for our ability to help them achieve practical outcomes in what are often highly stressful situations.

Our insolvency and restructuring lawyers work closely with our market-leading professionals across the full range of practices. We represent debtors, secured and unsecured creditors, creditors’ committees, trustees, noteholders, receivers and investors in insolvency and restructuring cases.

We also have considerable experience in cross-border insolvencies and restructurings. We are often retained as PRC counsel by offshore creditors, liquidators and administrators. We have been involved in many high-profile insolvencies, including those related to Kodak and Lehman Europe.

Recognition

  • Restructuring/Insolvency (PRC Firms) – Band 1
    Chambers Asia-Pacific, 2013-2021
  • Restructuring & Insolvency - Outstanding
    Asialaw Profiles, 2018-2021
  • Insolvency & Restructuring Law Firm of the Year
    Asia Legal Business, 2013-2015
  • Winner of Restructuring & Insolvency
    China Business Law Journal, 2013-2015
  • China Restructuring/Insolvency PRC Firm of the Year
    Chambers Asia, 2011-2012
  • In-house community ASIAN-MENA Counsel Firm of the Year – Restructuring & Insolvency
    Asian-Mena Counsel, 2011
  • Insolvency and restructuring (PRC Firms) – Tier 2
    The Legal 500 Asia Pacific, 2020-2021

Notable Matters

We have advised on many of the market’s most significant transactions. These include representing:

Insolvency And Restructuring

Investor Representations
  • Four Rivers Fund on the restructuring of Chongqing Iron & Steel.
  • COQAMC on several restructurings and liquidations in Shanghai, Jiangsu, Guangdong, Sichuan and Jiangxi.
  • COS Capital, as an investor, on an insolvency proceeding in Shandong.
  • An investor on the restructuring of Shanghai Puwei Medical Apparatus Factory.
  • An offshore special opportunities fund on its acquisition of real estate in Shenzhen.
  • COFCO on a series of disputes in the restructuring of Wugudaochang.
  • Trinasolar on the debt restructuring of a large solar power enterprise.
  • Yingli Group on the restructuring of Wuxi Suntech.
  • China Cinda Asset Management Co. on the consolidated restructuring of Shandong Hongye Chemical Industry Group and its affiliates.
Cross-border Insolvencies and Restructurings
  • Acting as joint administrators of Shanghai CEFC, and obtaining the first recognition of mainland Chinese bankruptcy proceedings by a Hong Kong court.
  • An ad hoc committee comprising holders of offshore notes of Huachen Energy Co. in the restructuring of Wintime Energy Co.
  • An ad hoc committee comprising holders of offshore notes in the restructuring of Yuhuang Chemicals.
  • The JPLs of FDG Electric Vehicles, a Hong Kong-listed company, in the restructuring of its subsidiaries in mainland China.
  • Offshore liquidators in connection with the bankruptcy reorganization of PK Founder Group and its offshore notes.
  • The administrators of Lehman Europe to deal with various issues relating to Lehman Europe’s assets in the PRC.
  • The liquidators of Titan Group Investment in its cross-border insolvent liquidation, and provided legal services in the restructuring and disposal of its assets in China.
  • The administrative receiver in the restructuring of Ferro China, a company incorporated outside China and listed in Singapore.
  • Kodak in relation to its US Chapter 11 restructuring, and advise on Chinese law issues relating to insolvency, corporate matters, tax and employment.
  • Marcegaglia Group in relation to the distressed debt of its Chinese subsidiary.
  • The liquidator of Fu Ji, a Hong Kong-listed company, in asset and debt restructuring proceedings.
  • Lufthansa, as a shareholder and a lien creditor, on the liquidation of Jade Cargo and the disposal of liened property.
  • Provided PRC legal advice for Momentive Performance Materials in relation to its US Chapter 11 restructuring.
  • The Royal Bank of Scotland as a creditor in the insolvency proceedings of Wuxi Suntech.
  • PwC, the liquidator of Centre Rise Trading, on various PRC law issues relating to the offshore liquidation.
  • KPMG as the joint provisional liquidators in Ambow Education Holding in the provisional liquidation of an offshore holding company.
Debtor/shareholders
  • Liugong Group on the restructuring of its subsidiary.
  • Debtors on the restructuring of Zhejiang Taizhou Tiantian Logistics Group.
  • The controller of Boshiwa on the debt restructuring of its PRC entity.
  • China Oriental Group on the liquation of its subsidiary.
  • Wuhan Guoyu Group on its debt restructuring, involving defaulted bonds.
  • 999 Pharmaceutical Group on its debt restructuring and negotiation with its bank creditors.
Creditors
  • The financial institution creditors’ committee of Sanpower Group on its debt restructuring.
  • The financial institution creditors’ committee of Yurun Group on the equity debt restructuring.
  • Shanghai Enterprise Annuity Development Center on the liquidation of Huaxia Securities.
  • A number of global special opportunities funds in litigations and bankruptcy proceedings in connection with their acquisition of NPLs in China.
  • Korean Development Bank, Woori Bank and Shinhan Bank in a bankruptcy debt declaration claim against STX (Dalian) Heavy Industries Co. and STX (Dalian) Shipbuilding Co. before Liaoning High People’s Court.
  • CNOOC Trust & Investment Co. as a creditor in declaration of creditors’ rights and participation in the insolvency proceedings of Jianqiao Securities Co.
  • A group of creditors in the insolvency procedure of Wuxi Suntech.
  • A number of creditors of Minfa Securities Co. in declaration of creditors’ rights, and in the negotiation of a restructuring plan.
  • A creditor of Jiamusi Securities Co. in declaring creditors’ rights and participation in the insolvency proceeding of this bankrupt securities firm.
  • China Southern Fund, as a creditor, in the reorganization of a group company in Xinjiang province.
  • Citigroup in relation to its recovery of several defaulted loans and negotiation of work-out arrangements, and represented Citigroup Shanghai Branch, as a creditor, in the insolvency proceedings of several companies.
  • Shenzhen Development Bank on disputes relating to the funds in the securities settlement accounts of the bankrupt Southern Securities and Deheng Securities.
  • Hyundai Heavy Industries Co., a Korean creditor, in connection with a bankruptcy proceeding of LDK Solar companies.
Administrator appointments
  • Appointed by Shanghai No.3 Intermediate Court as joint administrator of Shanghai CEFC.
  • Appointed by Shanghai No.3 Intermediate Court as administrator in the pre-pack reorganization and the subsequent bankruptcy reorganization of ZK Engineering.
  • Appointed by Shanghai No.3 Intermediate Court as administrator in the reorganization of listed company Bestway Marine & Energy Technology.
  • Appointed by Shanghai No.3 Intermediate Court as administrator in the reorganization of Shanghai Yuehe Property Co., the owner of Yuehe International Plaza, one of the largest incomplete property projects in Shanghai.
  • Appointed by the Dalian Intermediate Court of Liaoning province as the restructuring administrator to lead the reorganization proceedings of Dalian Shipbuilding Industry Co.
  • Appointed as administrator by the Shanghai No. 3 Intermediate Court to lead the insolvency liquidation of Tongye Coal and Chemical Industry Group, which involves more than RMB20 billion of debts and assets.
  • Appointed as a joint administrator by the Zhejiang Yuyao People’s Court to lead the insolvency proceedings of Huaxin Group, which involves more than RMB1 billion of debts and assets.
  • Appointed as a joint administrator by Yueqing People’s Court in the bankruptcy liquidation of KOTL Group, the controlling shareholder of KOTL, a listed company.
  • Represented the liquidation committee of Baoshan Pharmaceutical Factory in the factory’s liquidation.
  • Advised the liquidation committee of Shanghai Shengxin Real Estate Co. on the company liquidation.
  • Represented Zhenggong Group in its bankruptcy liquidation, focusing on the disposal of state-owned assets.
  • Entrusted by Yiwu government to conduct legal due diligence and prepare a restructuring plan for the Neoglory Group.