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China Merchants Group\u2019s Liaoning Port Group has taken over bankrupt Dandong Port as a local court forced the approval of a restructuring plan proposed by the government-led administrators.<\/p>\n
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Dandong Port entered into court-led restructuring process in April last year due to a major debt crisis with liabilities amounting to RMB66.7bn ($9.67bn), with an administration\u00a0team formed by multiple government departments.<\/p>\n
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Under the restructuring plan, Liaoning Port Group will take control of Dandong Port and institutional creditors will receive shares of the port worth around 11.7% of their debt amount, while personal creditors will receive 10% debt repayment in cash.<\/p>\n
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The court forced the ruling despite the creditors and shareholders voting against the restructuring plan in two rounds of voting.<\/p>\n
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Harold Ruvoldt, a lawyer who claims that he represents 80% of the company\u2019s shareholders, wrote an open letter claiming that shareholders were completely shut out of the bankruptcy and reorganisation process.<\/p>\n
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The port was controlled by local multi-sector enterprise Rilin Group and businessman Wang Wenliang, founder of Rilin Group, and it was one of the few private-owned seaports in China. Wang resigned as Dandong Port\u2019s legal representative in 2017 after he was found to be involved in a party official election scandal. He has been missing since, and sources tell Splash<\/em> that Wang has already fled overseas. Prior to the court ruling, Wang and his family controlled a 53.3% stake in the port via two offshore entities.<\/p>\n <\/p>\n When contacted by Splash<\/em>, an official from an investment firm which suffered losses from Dandong Port\u2019s bond default, said the court didn\u2019t consult with the creditors before making the ruling.<\/p>\n <\/p>\n Dandong Port, situated on the border between China and North Korea, is major bulk and container port in northeast China, serving as an important gateway port to the Far East.<\/p>\n splash247<\/p>\n","protected":false},"excerpt":{"rendered":" China Merchants Group\u2019s Liaoning Port Group has taken over bankrupt Dandong Port as a local court forced the approval of a restructuring plan proposed by the government-led administrators. Dandong Port entered into court-led restructuring process in April last year due to a major debt crisis with liabilities amounting to RMB66.7bn ($9.67bn), with an administration\u00a0team formed …<\/p>\n","protected":false},"author":1,"featured_media":5488,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[95,2467,1116,2466,1476,953,2468,2465],"class_list":["post-5487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-port-news","tag-china","tag-controversial","tag-court","tag-dandong","tag-merchants","tag-port","tag-ruling","tag-takes"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/5487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=5487"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/5487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/5488"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=5487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=5487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=5487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}