On February 18, 2025, the reorganization plan of Ren Dong Holdings Co., Ltd. ("Ren Dong Holdings") was approved by the Guangzhou Intermediate People's Court ("Guangzhou Intermediate Court"). JunHe’s Shanghai office acted as the lead administrator in the temporary administrator and administrator consortium, and JunHe partner Dong Ming acted as the administrator’s principal.
Ren Dong Holdings is engaged in third-party payment services. It was listed on the Shenzhen Stock Exchange in 2011, with the stock code 002647. In recent years, due to adverse macroeconomic situations and other factors, Ren Dong Holdings faced severe liquidity shortages and was unable to repay its maturing debts. Its core assets were pledged and preserved, and the company fell into operational and debt crises. On May 7, 2024, the creditors of Ren Dong Holdings applied to the Guangzhou Intermediate Court for its pre-reorganization and reorganization on the grounds that the company was unable to repay its maturing debts and was clearly insolvent but had reorganization value. On May 24, 2024, the Guangzhou Intermediate Court decided to initiate pre-reorganization for Ren Dong Holdings. During the pre-reorganization, under the guidance of the Guangzhou Intermediate Court, the temporary administrator and Ren Dong Holdings completed the debt review, the asset investigation and the hiring of intermediaries to issue audit, evaluation and reorganization valuation reports. They recruited pre-reorganization investors, formulated the pre-reorganization plan, communicated with the major creditors regarding the pre-reorganization plan and the voting by major creditors on the pre-reorganization plan. The China Securities Regulatory Commission issued a no-objection letter regarding the reorganization of Ren Dong Holdings and the Supreme People's Court agreed to accept its application for reorganization. These efforts laid a basis for Ren Dong Holdings to transit from pre-reorganization to reorganization. On December 30, 2024, the Guangzhou Intermediate Court ruled to accept the creditors' application for the bankruptcy reorganization of Ren Dong Holdings.
On February 13, 2025, the first creditors' meeting and the shareholders’ group meeting of Ren Dong Holdings was held, at which the draft reorganization plan was approved. The approval rate in the shareholders’ group was as high as 99.8146%. At the creditors' meeting, 100% of the secured creditors and 99.69% of the ordinary creditors voted for the draft reorganization plan, with the amount of debts represented by them accounting for 98.37% of the total debt amount of that group.
The legitimate rights and interests of all parties were efficiently safeguarded in this case, and the interests of all creditors were reasonably protected. The Supreme People's Court and the China Securities Regulatory Commission issued new rules on the reorganization of listed companies on December 31, 2024, and the reorganization plan of Ren Dong Holdings was the first to be approved after the new rules were promulgated. Following the promulgation of the new rules, JunHe and Ren Dong Holdings re-examined and scientifically adjusted the draft reorganization plan accordingly, providing replicable examples for subsequent listed company reorganizations. Given the numerous creditors filing securities misrepresentation claims, the administrator set up a team to conduct in-depth research and, under the guidance of the Guangzhou Intermediate Court, developed a small-amount repayment method and analyzed the impact of the draft reorganization plan to balance the interests of all parties and maintain the stability of the financial market. Guangzhou Helibao Payment Technology Co., Ltd., a core subsidiary of Ren Dong Holdings, holds a payment license issued by the People's Bank of China and is approved to conduct cross-border RMB payment business. It ranks among the top third-party payment service providers in China. JunHe assisted in exploring the company's value and communicated with investors on industry empowerment, with the aim to drive the coordinated development of the regional industrial chain, and promoting the high-quality development of the local economy. JunHe attaches great importance to the information disclosures by listed companies under Chinese laws and regulations therefore we procured Ren Dong Holdings to fulfill its information disclosure obligations duly and promptly in accordance with the law and uncovered potential risks, so as to safeguard the legitimate rights and interests of all creditors, including small and medium investors.
With its professional services and efficient collaborations, JunHe earned high recognition from the court, creditors, Ren Dong Holdings and the other stakeholders. The administrator will actively promote the implementation of the reorganization plan, properly handle creditor-debtor relationships and optimize the company’s business management. Through the execution of the reorganization plan, Ren Dong Holdings will be revitalized.
The JunHe team was led by partners YANG, Li, LIU, Zhengdong, ZHANG, Ping, DONG, Ming and BAI, Tao_Theo. Mr. Dong acted as the administrator’s principal and the partner in charge. JunHe lawyers SHEN, Feng, WU, Ling, CHEN, Yuwei and ZHU, Weili also provided great support for this project.