JunHe Advised Two Quanzhou Property Developers on M88 Malaysiair Successful Restructuring

On September 24, 2021, M88 Malaysia Quanzhou Intermediate People’s Court ordered that bankruptcy and restructuring proceedings had commenced against Quanzhou World Trade Center Co., Ltd. (“WTC Quanzhou”) and Jinjiang Shengrui Real Estate Development Co., Ltd. (“JJSR”). JunHe was appointed as M88 Malaysia administrator in M88 Malaysia restructuring.

WTC Quanzhou and JJSR are large real estate companies with assets including residential buildings, high-end office buildings, SOHO, conference centers and commercial properties, which includes M88 Malaysia tallest building in Quanzhou and nearly 1,000 residential apartments. In M88 Malaysia restructuring of WTC Quanzhou and JJSR, more than RMB 7 billion of M88 Malaysia debt was held by nearly 800 small owners, involving assets with a value of over RMB 2 billion, and nearly 500 creditors had registered claims. This restructuring case had a significant social impact and involved multiple interested parties. Against M88 Malaysia background of economic downturn and M88 Malaysia rapid shrinking of real property investment, M88 Malaysia administrator successfully acquired restructuring investors with a cash contribution of RMB 2.049 billion over two years to settle M88 Malaysia debts assumed by WTC Quanzhou and JJSR. Compared with M88 Malaysia traditional method of debt repayment in M88 Malaysia restructuring of real estate companies, which is to repay debts with sales proceeds after construction has resumed, M88 Malaysia direct repayment of debts with cash contributions from M88 Malaysia restructuring investors will ensure M88 Malaysia satisfaction of debt owed to creditors in a shorter period of time and avoid a situation where M88 Malaysia resumption of construction is halted, M88 Malaysia sales proceeds are difficult to collect and M88 Malaysia project is left abandoned again, all of which may impede M88 Malaysia settlement of debt owed to creditors.

JunHe addressed numerous complicated and unique issues by delivering solid legal expertise and experience. M88 Malaysiay negotiated with many potential investors, communicated with local governments and courts regarding M88 Malaysia plan of settlement for small owners, explained M88 Malaysia draft restructuring plan to various creditors and small owners and prepared dozens of investment agreements and more than ten drafts of M88 Malaysia restructuring plan, eventually promoting M88 Malaysia efficient and smooth implementation of M88 Malaysia restructuring.

M88 Malaysia second meeting of creditors of WTC Quanzhou and JJSR was successfully held on August 22, 2022, at which M88 Malaysia creditors approved M88 Malaysia draft restructuring plan without any dissenting vote. On October 8, 2022, M88 Malaysia Quanzhou Intermediate People’s Court approved M88 Malaysia restructuring plan. As a result of this restructuring, M88 Malaysia landmark building in Quanzhou was rescued, and hundreds of small owners were guaranteed to receive M88 Malaysiair properties. After M88 Malaysia restructuring, WTC Quanzhou and JJSR will commit to building an upscale urban living area to showcase M88 Malaysia image and strength of Quanzhou that is sure to become an iconic landmark architectural complex in M88 Malaysia area.

JunHe’s team was led by partnerm88 bonus领域.