Recently, the bankruptcy reorganization investment project of Shandong Shinetech New Energy Co., Ltd. sponsored and promoted by Hongjie Asset Management Co., Ltd. (“Hongjie Asset”, as the Bankruptcy Reorganization Investor), the professional asset management business platform of Far East Horizon, was successfully launched. 

△ Signing Ceremony of Project Investment Agreement

As the first market-oriented bankruptcy reorganization investment project of Far East Horizon, the Project represents the continuous progress of the Company in innovative finance, and also reflects more comprehensive ability of the Company to provide integrated financial services for different types of customers.

The Deadlock 

Troubled Bankruptcy Reorganization 

Founded in 2013, Shandong Shinetech New Energy Co., Ltd. was a high-tech enterprise introducing advanced experience from Germany, the first “one-stop” PV power generation system provider in Shandong, and the President Unit of Zibo Photovoltaic Industry Association. From 2014 to 2017, stimulated by the subsidy policy of the PV industry, it developed rapidly and built a number of self-backed projects through financing from financial institutions, engaging itself in diversified PV services.

△ “Dual Carbon Asset” Nature of the Project 

The change of policy and market environment caused the production and operation of the enterprise into difficulties and a deadlock, with various financial institutions filing lawsuits against it. In November 2020, the enterprise filed for bankruptcy reorganization. After entering the bankruptcy procedure, the enterprise, consulting agency and relevant government authority had discussed many plans, but all were impossible to achieve the balance of interests or had defects in compliance, making the reorganization unable to advance for a long time.

Nirvana Rebirth

Customized Solution with a Win-Win Situation

By August 2021, the joining of the M&A Team of Far East Horizon shed a gleam of dawn over the Project. The customized bankruptcy reorganization solution offers new idea for the enterprise bail-out, as it can ensure the timely repayment of the enterprise while iterating over old equipment and rising again by taking advantage of the window of “Double Carbon Economy”. At the same time, in order to eliminate the worries of the enterprise, Far East Horizon also introduced a company as the guarantor of the energy enterprise through its industrial resources network, providing a real Nirvana Rebirth for the enterprise.

△ Assets Appraisal Site of the Shinetech Project 

The success of any business opportunity is not achieved overnight, so is the Shinetech Project.  For half a year, the market-oriented bankruptcy reorganization investment solution formulated by Far East Horizon experienced a series of careful deployments and alignments including professional asset appraisal, ingenious design of reorganization draft, several rounds of negotiations among creditors, optimization of corporate governance structure, economic and tax planning of reorganization assets and disposal of contingent liabilities, and finally realized the maximum protection of creditors' interests and the maximum play of the bankrupt enterprise’s efficiency, achieving the unification of social value and financial value.

△ Court Order on the Bankruptcy Reorganization Solution of Shinetech Project

The successful launch of the Bankruptcy Reorganization Solution will not only lay a solid foundation for the rebirth and development of the energy company, but also contribute to the local employment level and stable energy supply. Therefore, the Solution was unanimously recognized by relevant creditor financial institutions, bankruptcy administrator and local Photovoltaic Industry Association, passed the vote in the conference of creditors and original enterprise investors with overwhelming support, successfully obtained the ruling of the local court, and highly affirmed by Zibo Economic Development Zone Management Committee.

Professional DNA

The Advantageous Strategy of “Finance + Industry” 

Bankruptcy reorganization investment project is recognized as “High-grade, Precision and Advanced” project in the field of special opportunity investment. With unique attributes of financial reorganization and industrial investment, such as project has the difficulties of complex process operation and the balance of stakeholders’ interests. Therefore, general financial institutions will say no to it as they lack of good “Industrial Cognitive DNA”. Industrial companies often do not know how to start as they lack of professional “financial disposal skills”. The strategic mode of “Finance + Industry” and the development idea as a financial service entity that Far East Horizon has been upholding these years are exactly its advantages in advancing such business.

In order to be more attentively in providing bailouts and professional financial services for different types of enterprises, Far East Horizon has established Hongjie Asset, the professional innovative business platform. Since its establishment three years ago, Hongjie Asset has successively provided professional financial services for dozens of enterprises, and reached strategic cooperation with a number of AMCs, across the country. In the future, Far East Horizon will continue to expand the scope of services in asset management business, improve its service level, and provide more enterprises with innovative, professional, reliable and first-class services.

Hongjie Asset Management Co., Ltd.

Hongjie Asset is a professional platform of Far East Horizon for asset management business. Relying on the experienced professional team and the unique asset management capacity of Far East Horizon, it provides innovative financial services for stakeholders including structured financing of debt or property rights, non-performing assets acquisition, M&A and restructuring to realize value returns, with asset as the center, project as the carrier, by facilitating the advantages of asset management and operation, and based on its deep understanding of asset value and effective management of various assets. In addition, Hongjie Asset is willing to cooperate with industrial customers and financial institutions to provide high-quality professional disposal services and sustainable win-win value creation.