BUSINESS

China Fortune Land Enters Pre-Restructuring After Years of Stalled Debt Deal

Published: Nov. 19, 2025 4:10 a.m. GMT+8

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As of the first quarter of 2025, China Fortune Land Development Co. Ltd. had 274.5 billion yuan in assets against 264.7 billion yuan in liabilities.

Embattled Chinese developer China Fortune Land Development Co. Ltd. has formally entered court-supervised pre-restructuring — a preliminary legal process that allows distressed firms to negotiate repayment plans under judicial oversight — after years of failed attempts to settle its multibillion-dollar debt burden.

The company disclosed Tuesday it received notice from Langfang Intermediate People’s Court confirming acceptance of a pre-restructuring petition filed by creditor Longcheng Construction Engineering Co. Ltd. and appointed a provisional administrator for the process. While the case stops short of a formal bankruptcy proceeding, it initiates a pre-restructuring process — China’s closest equivalent to Chapter 11 planning.

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China Fortune Land Development entered court-supervised pre-restructuring after failing to resolve a multibillion-dollar debt, with assets of 274.5 billion yuan and liabilities of 264.7 billion yuan as of Q1 2025.
The process was initiated following failed out-of-court settlements and default on payments; less than 5% repayment achieved from earlier agreements.
Major creditors include ICBC and Ping An Group, each owed over 10 billion yuan.

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Who’s Who

China Fortune Land Development Co. Ltd.: China Fortune Land Development Co. Ltd. (CFLD) is an embattled Chinese developer facing severe financial distress. After years of failed out-of-court settlements, CFLD has entered court-supervised pre-restructuring due to its massive debt burden. The company reported negative shareholder equity and significant losses by Q1 2025, with a debt of 212.7 billion yuan as of September 2020.

Longcheng Construction Engineering Co. Ltd.: Longcheng Construction Engineering Co. Ltd. (廊坊市龙城建筑工程有限公司) is a creditor of China Fortune Land Development Co. Ltd. It filed a pre-restructuring petition against China Fortune Land Development, which was accepted by the Langfang Intermediate People’s Court. Longcheng Construction Engineering Co. Ltd. argued that China Fortune Land has defaulted on debt obligations but still holds restructuring value.

King & Wood Mallesons: According to King & Wood Mallesons, 23 Chinese listed firms began pre-restructuring in 2024. However, only eight of these companies successfully transitioned to a formal court-led restructuring process.

Industrial and Commercial Bank of China Ltd.: Industrial and Commercial Bank of China Ltd. is identified as a major creditor of China Fortune Land Development Co. Ltd., holding over 10 billion yuan in exposure. China Fortune Land Development is undergoing court-supervised pre-restructuring due to its significant debt burden.

Ping An Group: Ping An Group is a major creditor of China Fortune Land Development Co. Ltd., with over 10 billion yuan in exposure. The developer is undergoing court-supervised pre-restructuring due to its significant debt burden and failed repayment attempts.

Citic Trust Co. Ltd.: Citic Trust Co. Ltd. is mentioned as one of the major creditors of China Fortune Land Development Co. Ltd. China Fortune Land Development Co. Ltd. is a Chinese developer facing a multibillion-dollar debt burden and has entered court-supervised pre-restructuring.

Minmetals International Trust Co. Ltd.: Minmetals International Trust Co. Ltd. is mentioned as one of the major creditors of China Fortune Land Development Co. Ltd., a Chinese developer facing court-supervised pre-restructuring. The amount of Minmetals International Trust Co. Ltd.'s exposure is not specified, but it is listed alongside other significant creditors like Citic Trust Co. Ltd. and Agricultural Bank of China Ltd.

Agricultural Bank of China Ltd.: Agricultural Bank of China Ltd. is a major creditor of China Fortune Land Development Co. Ltd., holding exposure to the embattled developer's debt. This exposure, along with other major creditors like Industrial and Commercial Bank of China Ltd. and Ping An Group, stems from China Fortune Land's significant debt obligations, which led to its court-supervised pre-restructuring process.

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What Happened When

As of September 30, 2020：: China Fortune Land’s total debt stood at 212.7 billion yuan, including nearly 90 billion yuan in onshore and offshore bonds.

Late 2020：: China Fortune Land's crisis began with a liquidity crunch.

January 2021：: China Fortune Land defaulted on a bond.

September 2021：: A 219.2 billion yuan restructuring plan was announced, promising partial cash repayment by the end of 2023.

By end of 2023：: Partial cash repayment was promised to creditors in the restructuring plan, but only less than 5% was actually repaid due to sluggish asset sales.

2024：: 23 Chinese listed firms began pre-restructuring; only 8 transitioned to formal court-led restructuring (industry-wide context).

First quarter of 2025：: The company's financials showed 274.5 billion yuan in assets against 264.7 billion yuan in liabilities, with negative shareholder equity.

As of 2025 (year-to-date)：: Revenue plunged 72% and net losses approached 10 billion yuan.

June 2025：: China Fortune Land first sought to enter judicial restructuring by submitting pre-filing applications to regulators.

November 18, 2025：: China Fortune Land disclosed it had entered court-supervised pre-restructuring, after a petition by creditor Longcheng Construction Engineering Co. Ltd. was accepted.

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