Guantao advised Quanzhou Qixing Machinery Co., Ltd. and Fujian Qixin Machinery Equipment Co., Ltd. o-北京观韬律师事务所

Guantao advised Quanzhou Qixing Machinery Co., Ltd. and Fujian Qixin Machinery Equipment Co., Ltd. o

2019-01-18

HOME > GUANTAO NEWS > Deals > Guantao advised Quanzhou Qixing Machinery Co., Ltd. and Fujian Qixin Machinery Equipment Co., Ltd. o

Recently, Quanzhou Qixing Machinery Co., Ltd. and Fujian Qixin Mechanical Equipment Co., Ltd. (hereinafter referred to as 'Qixing Company') obtained the approval of Quanzhou Intermediate People's Court on their draft plan of substantial merger and reorganization.

According to the draft plan of the demolition, the administrator would auction the 100% equity along with the corresponding reorganization assets of Qixing Company at the starting price of RMB 128 million on Taobao judicial auction platform, and the highest bidder would obtain the 100% equity along with the corresponding reorganization assets of Qixing Company. On 10 December 2018, the equity was put on the Internet for the first public auction, which ended on 24 December 2018.

The company's main products are chassis parts of excavators, bulldozers and other construction machinery, which are called “Four Wheels and One Belt”. Due to the huge financing scale and capital investment of the company in the IPO process around 2012, it failed to enter the capital market or achieve the growth of sales, which led to the continuous increase of financial costs, the continuous expansion of debt scale and a vicious circle of operation. Besides, the company's poor management resulted in the rupture of capital chain and the loss of the ability to pay off debts.

On 4 December 2017, Quanzhou Intermediate People's Court accepted the restructuring application submitted by the creditor Fujian Dejie Machinery Co., Ltd. and appointed the liquidation group of Qixing Company as the administrator. As the legal counsel of the administrator, Guantao set up a team of lawyers to provide legal services for the reorganization, composed of Jin Yucheng, the executive director of the business line of bankruptcy, liquidation and reorganization, together with Guo Xiaodong, An Shouzhi, Zheng Yingying, Lei Jun, Chen Sisi and Huang Changting.

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