Yanglu Highway Bankruptcy Reorganization Project Participated by Long An Law Firm Ranked Highly on China Business Law Journal-Deals of the Year

In August 2010, the construction of Yanglu Highway, the first Highway project invested by foreign companies in Guangxi, was officially started. Due to the broken capital chain of the investor, the project was shut down at the end of 2013. China Merchants Bank, the second largest creditor of the project company, specially entrusted Xiangdong Lai’s team from Long An Law Firm to apply to the Nanning Intermediate People’s Court for bankruptcy reorganization of Yanglu Company. On December 12, 2016, the Nanning Intermediate People’s Court made a civil ruling and accepted the application. The audit report showed that the creditor’s rights of the project exceeded 5 billion yuan, involving more than 2,000 creditors. The bankruptcy reorganization case of Guangxi Yanglu Highway Co., Ltd. (Yanglu Company) is by far the largest bankruptcy reorganization case in Guangxi and the only bankruptcy reorganization case involving the construction of Highways in Chinese courts.

The Xiangdong Lai’s team of lawyers had visited and consulted with the local government, the Guangxi Provincial Department of Transportation, The High People’s Court of the Guangxi Zhuang Autonomous Region, the Nanning Intermediate People’s Court, staff at all levels, managers, other major creditor banks, several representatives of construction parties, evaluation agencies, and potential reorganization investors of the applicant. After declaring creditor’s rights, verifying creditor’s rights, assisting in convening creditors ‘meetings, establishing creditors’ committee, formulating rules of creditors’ committee, reviewing debtor’s property management plans, and other work, laid a good foundation for promoting debt reorganization. After lots of negotiations and deliberation, Guangxi Transportation Investment Group , chosen as the investor of reorganization, helped to complete the draft reorganization plan. The Nanning Intermediate Court ruled on May 31, 2018 that it approved the draft reorganization plan and terminated the reorganization process. After the investor’s reorganization fund of 1 billion yuan was in place, the project was fully resumed in June 2018. The project involved foreign investment, project recovery, and engineering construction. The registered creditor base was large, and the nature of the creditor’s rights was complex and difficult to confirm. After the reorganization plan was approved, the Yanglu Highway opened on July 30, 2019.

Long An Bankruptcy Law Department is deeply involved in the business field, and is good at designing and implementing innovative reorganization plans for customers, helping enterprises in crisis to restructure their finances and structures, and restoring and enhancing the value of the enterprise.

原文始发于微信公众号（隆安律师事务所）：隆安阳鹿高速公路破产重整项目荣登《商法》“2019年商法杰出交易”榜单