The much-anticipated restructuring and takeover of Shanshan Group (Shanshan Group Co., Ltd.) by "private shipping king" Ren Yuanlin was halted at the last moment.
On the evening of November 3, Ningbo Shanshan Co.,Ltd. (600884.SH, share price: ¥13.23, market cap: ¥29.76 billion) disclosed the voting results from the third creditors' meeting regarding the consolidation restructuring of its controlling shareholder and its wholly-owned subsidiary. While the employee creditor group and tax creditor group approved the "Restructuring Plan (Draft)," the secured creditor group, unsecured creditor group, and shareholder group rejected it, leading to the plan's failure.
The draft restructuring plan was submitted by a consortium consisting of Jiangsu New Yangzi Commerce Co., Ltd. (New Yangzi), Jiangsu New Yangzi Ship Investment Co., Ltd. (New Yangzi Ship), China Orient Asset Management Co., Ltd. Shenzhen Branch (Orient Asset), and Xiamen TCL Technology Industry Investment Partnership (TCL Industry Investment). However, the consortium, led by Ren Yuanlin, failed to persuade the secured creditor group, unsecured creditor group, and shareholder group.
A source close to the consortium, Feng Yuan (pseudonym), revealed that the rejection stemmed from irreconcilable differences in interests among stakeholders. Regarding the next steps for Shanshan Group's restructuring, Feng Yuan stated, "Let nature take its course."
**Why Was the Restructuring Plan Rejected?** The consortium's proposal involved a three-step acquisition strategy—direct stock purchase, indirect acquisition via a partnership, and voting rights delegation—to secure a 23.36% stake in Ningbo Shanshan Co.,Ltd. for ¥3.284 billion. However, key creditor and shareholder groups opposed the plan, primarily due to dissatisfaction with repayment terms and conflicting interests.
**What’s Next for Shanshan Group’s Restructuring?** With the rejection, the restructuring process may restart entirely. Under China’s Enterprise Bankruptcy Law, negotiations or court-mandated rulings could follow, but legal experts deem forced approval unlikely given the scale of Shanshan Group. Some insiders suggest a new investor selection process may be initiated.
**Complications from Samaco’s Challenge** Samaco Advanced Materials Co., Ltd. (Samaco) further complicated matters by accusing New Yangzi of sidelining it post-selection. However, sources close to New Yangzi denied these claims, stating Samaco was offered participation but declined.
Additionally, it was revealed that New Yangzi initially entered the restructuring as a facilitator for an undisclosed orchestrator, who later withdrew due to qualification issues. This shift led New Yangzi to take full control, abandoning its role as a financier. Some speculate Samaco’s objections may relate to unresolved demands from this orchestrator.
(Disclaimer: The content is for reference only and does not constitute investment advice. Investors should proceed at their own risk.)
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