Anhui State Capital Invests RMB 5 Billion in Shanshan Restructuring; Unit Faces RMB 1.954 Billion Lawsuit
Anhui provincial state capital has directly invested RMB 5 billion to take control of Shanshan Group in a bankruptcy restructuring case involving RMB 40 billion, with six local government-backed creditors having filed ordinary claims exceeding RMB 20 billion. Separately, two Shanshan subsidiaries face lawsuits over private lending disputes totaling about RMB 1.954 billion from four Yunnan-based investors, while the founding Zheng family also faces debt collection claims.
In the restructuring case of the Shanshan conglomerate, local government-linked platform companies account for a high proportion of declared ordinary claims, with six major local state-owned creditors filing combined claims of more than RMB 20 billion. Anhui provincial state capital has recently directly invested RMB 5 billion to take control of Shanshan Group, which is involved in a bankruptcy restructuring case worth RMB 40 billion.
On August 7, Shanshan Co. said in a filing that it had learned through the court announcement website that two subsidiaries - Shanghai Shanshan Lithium Battery Materials Technology Co. , Ltd. and Yunnan Shanshan New Materials Co. - had been sued by four companies over private lending disputes involving approximately RMB 1.954 billion. The plaintiffs comprise Yunnan Jinyuan Equity Investment Fund Management Co. , Yunnan Dianzhong New Area Equity Investment Co. , Kunming Industrial Development Equity Investment Fund Partnership (Limited Partnership) and Anning Development Investment Group Co. In addition, the Zheng family, the former actual controller of the group, has also faced debt collection lawsuits.
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