DeHeng Assisted Chuxiong Court with the Reorganization of the Wanhu Dongcheng Project in the Court's First Real Estate Company Reorganization Case

2022-03-24

The reorganization of Wanhu Real Estate Development Company in Chuxiong involved complicated legal relations, and the Wanhu Dongcheng project was left with a lot of outstanding work for a long time, in steep debts, and the conflict between creditors and home buyers was pronounced, threatening social and financial stability and people's wellbeing in and nearby Chuxiong city. In this case, DeHeng lawyers played a key role in the successful reorganization of the company. They leveraged their expertise, provided a lot of legal opinion and suggestions to the bankruptcy administrators, and helped them solve many complicated and difficult legal issues including how to protect the rights of and balance all parties involved to the maximum extent, in particular, how to protect the rights of home buyers and creditors, how to give full play to the role and functions of the creditors committee according to law, how to select investors for the reorganization according to law, how to draft the reorganization plan, how to ensure the successful implementation of the follow-up business plan and complete the construction, and how the organization plan can realize win-win outcomes regarding legal procedures, economic value and social benefits.  DeHeng lawyers' professionalism and dedication were widely recognized and highly appreciated by the bankruptcy administrators, creditors, home buyers, reorganization investors and Chuxiong's city court.

Following the approval of the reorganization plan, the project will enter into a more challenging and arduous period of execution. DeHeng will use its expertise to continue to assist the administrators in supervising the implementation of the reorganization plan, realize the smooth delivery of the sold homes as soon as possible, help make the company reorganization a complete success, and give the Wanhu Dongcheng project a new life. 

This case was the first real estate company reorganization case accepted by Chuxiong Prefecture's Intermediate Court and Chuxiong's city court, and also one involving the biggest balance sheet. Its reorganization practice and model have high demonstration value to save the distressed real estate enterprises and solve the unfinished building projects by legal and market-based means in Chuxiong of Yunnan province.  

The DeHeng team was led by partner Zhou Jie, also a member of the Bankruptcy & Restructuring Committee, lawyers Ren Zhangwei and Wang Fan, with support from lawyers Guo Yingsi and Lyv Jiaxue.