The Beijing No. 1 Intermediate Individuals’s Court docket issued an announcement on Friday (twenty eighth) stating that the administrator of China’s monetary big Zhongzhi Enterprise Group submitted an software to the courtroom stating that the associated relationships of Zhongzhi-related enterprises are advanced, their belongings are extensively distributed, and their money owed are big. Due to this fact, 248 corporations together with Zhongzhi Enterprise Group utilized for substantive merger and chapter liquidation.
Senior executives of Zhongzhi Group, which has money owed exceeding 400 billion yuan, have been topic to obligatory measures
Zhongzhi Enterprise Group filed for chapter in January this 12 months. The Beijing No. 1 Intermediate Individuals’s Court docket dominated to simply accept the case on January 5 and appointed Beijing Dacheng Legislation Agency because the administrator on January 26.
The Wall Avenue Journal reported on the time that Zhongrong Worldwide Belief, a serious subsidiary of Zhongzhi Group, had belongings below administration of roughly US$108 billion (roughly 784.9 billion yuan) as of the top of 2022. .
The report additionally talked about that Zhongzhi Group is likely one of the largest members in China’s roughly US$3 trillion belief enterprise, an opaque a part of the monetary system that gives funding merchandise to rich people and corporations.
The Beijing First Intermediate Individuals’s Court docket identified on Friday that after investigation by the administrator, Zhongzhi Enterprise Group was extremely associated to 247 corporations together with China Transport Shengfeng (Beijing), and their authorized particular person standing was extremely confused. “The price of distinguishing the properties of 248 corporations together with Zhongzhi Enterprise Group Co., Ltd. is just too excessive, and separate chapter liquidation will critically harm the honest settlement pursuits of all collectors.”
The Beijing No. 1 Intermediate Individuals’s Court docket acknowledged that related stakeholders who’ve objections to Zhongzhi Enterprise’s substantive merger and chapter software ought to file objections earlier than July 5 this 12 months. After the expiration of the objection interval, it is going to be reviewed whether or not the registrant has pursuits within the entity to be substantively merged, and the opinions of related events might be heard by way of hearings and different means.
