The much-anticipated restructuring plan of Shanshan Group has hit a roadblock. On November 3, Shanshan Corp announced the creditor voting results for the bankruptcy restructuring proposal of its controlling shareholder, Shanshan Group, and its wholly-owned subsidiary Ningbo Pengze Trading. The draft restructuring plan failed to gain approval, casting uncertainty over the months-long restructuring efforts.
Due to significant litigation involving debt issues, Shanshan Group and Pengze Trading were ordered by the Yinzhou District Court in Ningbo, Zhejiang, to undergo a consolidated restructuring on March 20 this year. A virtual meeting was held on October 21 to discuss the plan.
Creditors and stakeholders voted on the "Restructuring Plan (Draft) for Shanshan Group and Ningbo Pengze Trading" and the "Equity Adjustment Proposal for Stakeholders." The voting period ended at 5 PM on October 30. While the employee and tax creditor groups approved the draft, the secured creditor group, ordinary creditor group, and stakeholder group rejected it, leading to the plan's failure.
Under a previously disclosed restructuring agreement signed on September 29, a consortium of investors—including Xinyangzi Commerce, Xinyangchuan Investment, TCL Industrial Holdings, and Orient Asset Management’s Shenzhen branch—agreed to acquire a 23.36% stake in Shanshan Corp for RMB 3.284 billion and restructure Shanshan Group and Pengze Trading.
Had the restructuring succeeded, control of Shanshan Corp would have shifted to the investor consortium, with Ren Yuanlin, founder of
The rejection may be linked to legal disputes involving Saimeike, which claims it was unfairly excluded from the investor consortium after initially partnering with Jiangsu Xinyangzi Commerce and Orient Asset Management. Saimeike, whose business aligns with Shanshan’s lithium battery anode materials, alleges it was replaced by TCL Industrial Holdings without notice and has sued to invalidate the restructuring plan.
Despite efforts by the court and restructuring administrators to address concerns, creditors remained unconvinced. Analysts note that with three key voting groups opposing the plan, court-enforced approval appears unlikely.
Shanshan Corp cautioned that the restructuring’s success remains uncertain and could impact shareholder equity and control. The company reported improved performance this year, with Q3 revenue up 11.48% YoY to RMB 14.809 billion and net profit soaring 1,121.72% to RMB 284 million. Buoyed by earnings recovery and restructuring expectations, its shares have surged over 70% year-to-date.
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