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JunHe’s restructuring and insolvency team assists *ST XGMA,*ST Zhongyin Cashmere and *ST SMTCL in their successful bankruptcy and restructure

2020.02.27

Recently, the bankruptcy reorganization cases of *ST XGMA (600815), *ST Zhongyin Cashmere (000982) and *ST SMTCL (000410), in which JunHe played various roles, was successful.


* The ST XGMA Bankruptcy Restructuring Case. On July 26, 2019, the Intermediate People's Court of Xiamen City rendered a ruling in the case of the bankruptcy reorganization of ST XGMA Co., Ltd. After 99 days of effort, the second creditors' meeting and the funders' group meeting were held on November 1, and the creditors voted to adopt the draft reorganization plan by a majority vote of the funders' voting group, with 97.32% of the voting amount agreed by the creditors and 99.11% of the voting amount agreed by the funders. On the same day, the court ruled to approve the reorganization plan and terminate the reorganization procedure after examination. As of December 24, the debt repayment work as prescribed in the reorganization plan had been basically completed. The plans for the conversion of shares into capital provident funds as prescribed in the reorganization plan had also been completed, and the conversion of shares was listed and traded on December 24. The ST XGMA Bankruptcy Restructuring Case adopted a  mode whereby the liquidation group acted as the manager, JunHe formed the liquidation group together with the relevant government departments and the financial consultant from Shenzhen Davo Financial Consulting Co., Ltd., and JunHe’s lawyer acted as the deputy group leader of the manager. The lead partner of this project was YANG, Li and WU, Lei and the partners DONG, Ming and SHEN, Feng participated in work at the client place. The partners ZHAO, Min and WANG, Wei also provided assistance during different stages of the project.


*The ST Zhongyin Cashmere Bankruptcy Restructuring Case. On July 9, 2019, the Intermediate People's Court of Yinchuan City ruled to accept the case of the bankruptcy reorganization of ST Zhongyin Cashmere. On November 13, the court ruled to approve the ST Zhongyin Cashmere reorganization plan and terminate the reorganization procedure. On December 25, ST Zhongyin Cashmere issued an announcement that the equity registration items as prescribed in the reorganization plan have been completed, and the shares converted from capital provident fund shall be listed and traded on December 25. In this project, JunHe served as the legal adviser of the Financial Debt Management Commission, assisted the Financial Debt Management Commission to participate in the bankruptcy reorganization procedure of ST Zhongyin Cashmere, and participated in the discussion and formulation of the draft reorganization plan. The leading partner of this project was YANG, Li, and the project team also included partner ZHOU, Jun

  

* The ST SMTCL Bankruptcy Restructuring Case. On August 16, 2019, the Intermediate People's Court of Shenyang City ruled to accept the case of the bankruptcy reorganization of ST SMTCL. On November 16, the court ruled to approve the reorganization plan and terminate the reorganization procedure. On December 25, ST SMTCL issued an announcement that the matter of a capital provident fund increase involved in the reorganization plan had been implemented, and the judicial transfer of shares held by controlling shareholders had also been completed. In this project, JunHe served as the legal adviser of the Financial Debt Management Commission, assisted the Financial Debt Management Commission to participate in the bankruptcy reorganization procedure of ST SMTCL, and participated in the discussion and formulation of the draft reorganization plan. The leading partner of this project was YANG, Li, and the project team also included partners LI, Jie and WU, Lei.   


The Restructuring and Insolvency team is a business group that is strongly supported by JunHe and has developed rapidly in recent years. Partners all have more than ten years of experience in the field of restructuring and insolvency, and have undertaken many influential bankruptcy cases. Whether as the bankruptcy administrator (liquidation group), members or consultants of the government working group, or as the debt committee, reorganization investors, reorganization consultants of self-managed debtors, the Restructuring and Insolvency team has rich practical experience. Thanks to the unique system and strong platform support provided by JunHe, the restructuring and insolvency team makes full use of the resources of the entire firm and can "provide services for all-round enterprise restructuring and bankruptcy affairs." (Chambers Asia Pacific Law Ranking 2019) 

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.