2020.12.28
On December 25, 2020, m88 casino bonus code Intermediate People’s Court of Wuxi Municipality, Jiangsu Province (“Wuxi Intermediate People’s Court”) approved m88 casino bonus code restructuring plan of Zhongnan Red Culture Group Equity Co., Ltd. (*ST Zhongnan, 002445,“Zhongnan Red Culture”) and terminated its bankruptcy and restructuring procedures. In m88 casino bonus code bankruptcy restructuring, Zhongnan Red Culture selected to become a debtor in possession. JunHe, as legal counsel for Zhongnan Red Culture, assisted m88 casino bonus code company in performing responsibilities regarding management of bankruptcy estate, including working out a draft restructuring plan.
Zhongnan Red Culture incurred a debt crisis because m88 casino bonus code company bonds of RMB 600 million were difficult to be repaid upon due. This capital chain rupture caused m88 casino bonus code complete stagnation of m88 casino bonus code company's production and operations. Due to m88 casino bonus code negative net profits in 2018 and 2019, m88 casino bonus code Shenzhen Stock Exchange issued a delisting risk warning of m88 casino bonus code stocks of m88 casino bonus code company. On May 25, 2020, Zhongnan Red Culture initiated m88 casino bonus code pre-restructuring proceedings under m88 casino bonus code guidance of m88 casino bonus code Wuxi Intermediate People’s Court. On September 10 and 11, pre-restructuring creditors meetings and investors meetings were held respectively, and m88 casino bonus code restructuring plan was passed with a vast majority vote. On November 24, Wuxi Intermediate People’s Court accepted m88 casino bonus code application for m88 casino bonus code restructuring of Zhongnan Red Culture. 31 days later, Zhongnan Red Culture's restructuring plan was adopted with a large majority vote, and was approved by m88 casino bonus code Wuxi Intermediate People’s Court. “m88 casino bonus code bankruptcy restructuring case of Zhongnan Red Culture” gained recognition as a case that has taken m88 casino bonus code shortest amount of time nationwide among cases relating to m88 casino bonus code restructuring of listed companies. In addition, Jiangyin Zhongnan Heavy Industries Co., Ltd., m88 casino bonus code wholly-owned subsidiary of Zhongnan Red Culture, also implemented bankruptcy restructuring. Its restructuring plan was passed by a creditors meeting on November 18 and was approved by m88 casino bonus code court on December 25.
Zhongnan Red Culture's bankruptcy restructuring case is an example of a successful application of bankruptcy restructuring mechanism for listed companies. This case actively explored and innovated such aspects as defusing m88 casino bonus code delisting risk, solving m88 casino bonus code issues of illegal guarantee and occupation of funds by m88 casino bonus code listed company, and m88 casino bonus code overall restructuring and pre-restructuring of m88 casino bonus code parent company and its subsidiary. This case provides valuable precedent in terms of m88 casino bonus code practical way of bailout and rehabilitation for om88 casino bonus coder listed companies facing a similar situation.