DeHeng Assisted in the First Successful Merger and Reorganization of China’s Top-100 Real Estate Enterprise Group

2025-04-21

On April 21, 2025, the Chongqing No.5 Intermediate People’s Court ruled to approve the reorganization plan of Chongqing Sincere Industrial Co., Ltd. (“Sincere” for short) and 29 other companies, and terminate the reorganization procedures for these companies, marking the first successful reorganization of China’s top-100 real estate enterprise group after three years.

As the first of China’s top 100 real estate enterprises to achieve distress relief through a “market-oriented, law-based” judicial reorganization approach, Sincere and the other 29 companies had a debt scale exceeding RMB 60 billion, involving nearly 5,000 creditors. The types of claims included homebuyer claims, financial claims, construction claims, commercial property rent claims, employee claims, and tax claims. The assets covered a variety of types, including residential properties, commercial properties, apartments, office buildings, hotels, and industrial parks. The overall situation was extremely complex, representing an ultra-large real estate enterprise group reorganization with no previous similar case for reference in the country. In this case, DeHeng made full use of the coordination mechanism between the local government and the court in Chongqing to explore an investor-creditor negotiation mechanism, and came up with solutions to many complex issues, achieving good social and economic effects.

Partner Fan Liya served as the head of the bankruptcy administrator team. With their rich project experience, extensive industry resources, and professional service capabilities, the DeHeng team will continue to provide high-level legal services for the execution of this case.