Subject to the approval of China Banking Regulatory Commission and People's Bank of China, the first domestic securitization of bad assets “Orient 2006-1 restructuring assets supported securities” initiated by China Orient Asset Management Corporation, was successfully issued on the bond market, among banks, on December 18, 2006. This is our first try at securitization in the bad assets area.
This project is another endeavor of Zhong Lun Law Firm in China, following the first project of securitization of credit assets counseled for China Development Bank.
Zhong Lun Law Firm was the only counsel for this project and provided China Orient Asset Management Corporation (as the trustor) and China Credit Trust Co., Ltd. (as the trustee and issuer) with full legal services including due diligent investigation towards bad assets, design for business structure and drafting legal documents.
A team including more than ten attorneys such as Zhang Xuebing, Liu Borong and Wang Yanzhuo provided counseling for this project.
Zhong Lun Law Firm is now undertaking projects of securitization of credit assets for many domestic banks and it's believed that the firm will promote more securitization products.