What’s new: A Beijing court has approved a plan for the restructuring of state-linked Peking University Founder Group Corp. (PUFG) and four of its units, according to a statement (link in Chinese) released Monday by the court-appointed administrator managing the process.
Why it matters: The court’s approval marks a substantial step for the once high-flying Chinese conglomerate, as it works to crawl out from the heap of debt it amassed during a wild expansion spree.
With an eye on PUFG’s health care and medical assets, Ping An Life Insurance Co. of China Ltd., the life insurance arm of mammoth financial conglomerate Ping An Insurance (Group) Co. of China Ltd. (601318.SH), will take a controlling stake in a reformed Founder Group, Caixin previously reported.
As the restructuring is entering a new phase, strategic investors are starting to take over management from the administrator, with the registration of the new company now in progress, a source close to Ping An told Caixin.
The background: PUFG failed to repay a 2 billion yuan ($309 million) bond in December 2019. In February 2020, Bank of Beijing Co. Ltd., one of its creditors, successfully requested (link in Chinese) the court to force PUFG into a restructuring under the bankruptcy law.
As of April 20, a total of 743 creditors had reported to the bankruptcy administrator that they were owed a combined 256.2 billion yuan by PUFG and four of its units, according to a draft restructuring plan obtained by Caixin.
Related: In Depth: Saving Peking University’s Fallen Tech Conglomerate
Contact reporter Luo Meihan (meihanluo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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