DeHeng Assisted in Successful Bankruptcy Reorganization of the Longmuwan Real Estate Project

2025-02-26

On January 27, 2025, Guoxin (Hainan) Longmuwan Investment Holdings Co., Ltd. and Guoxin (Hainan) Longmuwan Octopus Co., Ltd. (hereinafter referred to as the “Longmuwan Companies” collectively) had their reorganization plan approved by the Hainan Second Intermediate People’s Court, which also terminated the bankruptcy reorganization procedure. This move relieved the companies of debts amounting to RMB 13.5 billion, raised billions of yuan in funds, and put over 1,152 mu of land (about 76.8 hectares) and more than 350,000 square meters of buildings back into use. The introduction of strategic investors has injected fresh liquidity into the development of the Longmuwan Companies, helping them resume work and construction. This case vividly demonstrates the significant advantages of the reorganization system in advancing supply-side structural reforms, stabilizing the real estate market, and improving the business environment. It sets a pioneering benchmark in the industry, boosting overall confidence.

As a member of the liquidation group, after receiving the mandate, DeHeng quickly formed a project team led by Sun Ganghong, DeHeng’s deputy Party secretary, executive director, and global partner, with global partner Chen Jianhong and partner Wei Kun served as the project leaders. In May 2023, the team, along with members Yan Xin, Yan Chenggang, Mao Chunmei, Liu Cheng, Song Yueyi, Geng Guanjun, Cheng Ruyin, Xiao Yi, Peng Dekang, Yuan Ye, Wen Guzhi, Guo Xiangling, Lin Rujin, Chen Xuemei, and Xia Rong, arrived at the project site to begin pre-reorganization preparations for the Longmuwan Companies. Throughout the pre-reorganization and reorganization phases, they provided comprehensive, professional, efficient, and high-quality legal services for the project.