Introduction

In 2020, certain industrial company of Jiangsu announced bankruptcy due to factors including market environment changes and increased production cost. In the end of 2022, Fehorizon AMC came up with a bankruptcy reorganization plan with total investment exceeding 730 million yuan that was recognized by the court. Recently, the first phase of investment for bankruptcy reorganization has been in place as scheduled. Fehorizon AMC will take this opportunity to engage in investment in industrial projects, upgrade and transform relevant assets, and give stock assets a new life.

This industrial company of Jiangsu was once a key local enterprise prioritized for development. However, in recent years, due to the increasingly intensified international market competition as well as changes in factors including domestic economic environment changes and increased cost, it was put in a difficult position and ultimately adjudicated as bankrupt by the court with the order of liquidation in March 2020. The bankruptcy administrators attempted to recruit bankruptcy investors for three times in September 2020, May 2021 and October 2021 respectively, but none of the attempts succeeded.

In early 2022, as various parties related were in a terrible fix, Fehorizon AMC learned about the situation of the Company. After field trips and multiple rounds of communication with the bankruptcy administrators it learned that the Company was in debt to the extent of over 4 billion yuan with more than 200 creditors and extremely complex debtor-creditor relationships. Furthermore, because the Company had failed to find social investors with definite investment intent, its creditors were especially unsatisfied.

▲ A corner of the project plant area

The most difficult situation is the best opportunity to show intelligence and courage. Through preliminary research, Fehorizon AMC quickly judged amid a bewildering array of clues that the project could still be salvaged, and decided to take up and promote the project emphatically. Within a short time, its asset business team reassessed the value of assets involved the project, researched and analyzed the overall project transaction in aspects including compliance and financial tax risk, and designed Plan B targeting different circumstances. Meanwhile, it investigated and researched the situation of the local market and the park where the enterprise is situated, and gained a full understanding of the business structure of enterprises nearly and the market needs. Based on rigorous and thorough investigation and analysis, Fehorizon AMC established a detailed reorganization plan draft, and won the trust of bankruptcy administrators and creditors with its high efficiency and professional execution ability.

From the perspectives of multiple parties, the reorganization plan established by Fehorizon AMC not only gave a new life to ruined plants by making flexible use of means such as value restoration and investment attraction, but also guaranteed the rights of creditors to the greatest extent and offered a practical and effective solution to the harmonious development of regional economy. Also, as a specialized company under Fehorizon, Fehorizon AMC features high professional competence, strong contractual capacity and good market reputation, all of which gives clients, bankruptcy administrators and various creditors confidence in the revitalization of project assets.

▲ Aerial image of project location

Soon, the project that had been at a standstill for three years achieved a breakthrough. In September 2022, the enterprise officially initiated bankruptcy reorganization procedures; in November of the same year, the court approved its reorganization plan. In the end of this May, Fehorizon AMC succeeded in the bid of the underlying assets; not long ago, on June 6, the first phase of investment was put in place. However, the transfer of assets was only the beginning. The team of Fehorizon AMC then effectively improved the value of assets through systematic asset operation and management to ensure smooth advancement of asset revitalization work and actually fulfil the results of the all-win situation.

▲ Group photo of the Fehorizon AMC team and the enterprise’s bankruptcy administrators after the first phase of investment was put in place

“The Phase I investment is an end as well as a beginning. This time, we not only helped creditors to recover their losses, but also fully utilized resources, maximized the value of assets, and contributed to the construction and development of the park. In the future, on the basis of Fehorizon’s outstanding resource integration ability and exceptional systems and management standards, we can promote this mode nationwide by fully mobilizing our own professional teams to boost the upgrade of more cities!” said the leader of this project team. Following the injection of capital, the transformation of the plan area has been carried out in an orderly manner. Shortly after, the dust-covered plants will come back to life.

At the new development stage, to revitalize stock assets with integrated financial services and marketized means with real economy as the acting point is of great significance for the government, enterprises, the society and stakeholders. Active evolvement in this process is a test to and refinement of an enterprise’s competence as well as fulfilment of its social responsibilities. In the future, Fehorizon will continue to adhere to the mission of “serving urban upgrade and industrial upgrade,” give play to the team’s marketized and professional service ability in the field of bankruptcy reorganization, and make its unique contribution to the economic development, transformation and upgrade of more cities and regions.