Zhong Lun advises Shenzhen ST firm on bankruptcy reorganization 2009-04-09

Zhong Lun Law Firm has been recently retained by a Shenzhen-based ST (special treatment) listed company to advise on its reorganization.

A special treatment category is for shares which post consecutive annual losses.

Reorganization is a highlight of the Enterprise Bankruptcy Law of China. The passage and enforcement of a reorganization plan will get strong judicial support; besides, there are few potential risks on the part of the insolvent firm. Therefore, reorganization has become a new channel of financing for economically distressed listed companies. So far, a few ST companies have been pulled out of financial difficulties through reorganization.