Caixin
Jan 27, 2021 07:11 PM
FINANCE

Peking University’s Tech Conglomerate Gets More Time for Bankruptcy Restructuring

What’s new: A Beijing court has given debt-ridden Peking University Founder Group Corp. three extra months to submit a draft restructuring plan, which was originally due on Jan. 31, according to a filing (link in Chinese) released earlier this month.

The state-owned company’s bankruptcy administrator on Jan. 11 applied for the deadline to be pushed back, saying it is reviewing investment plans submitted by potential strategic investors and also needs more time to finalize a list of such investors, hold discussions with creditors and examine the restructuring plan, according to the filing.

The background: Two months after Founder Group defaulted on a 2 billion yuan ($309 million) bond in December 2019, one of its creditors filed an application to the Beijing court for the company to undergo restructuring under the bankruptcy law.

As part of the restructuring plan, the Peking University-owned company named four potential strategic investors, including real estate developer Zhuhai Huafa Group Co. Ltd., insurer Taikang Life Insurance Co. Ltd. and state-owned Shenzhen Investment Holdings Co. Ltd., Caixin reported in September.

As of Jan. 18, a total of 725 creditors had reported to the bankruptcy administrator that they were owed a combined 234.7 billion yuan by Founder Group and four of its related companies, according to a statement (link in Chinese) from the administrator.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Related: Peking University’s Indebted Offspring Lines Up Strategic Investors

Contact reporter Luo Meihan (meihanluo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

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