Achievements | Zhonglun W&D Facilitates the Launch of China’s Largest Debt Restructuring Service Trust

Recently, China Fortune Land Development Co., Ltd. (hereinafter referred to as “CFLD”) entrusted CCB Trust to establish the “Caifeng No. 1” Trust with a scale of RMB 25.5 billion, which is currently the largest single-asset “market-oriented enterprise restructuring service trust” in China. This trust marks a critical step in CFLD’s phased debt resolution arrangement with its financial creditors. Under the agreed terms, CFLD contributed holding assets worth RMB 25.5 billion—comprising equity in project companies and related creditor’s rights with stable cash flows—to establish the trust, using the trust beneficiary rights to repay the corresponding financial debts to relevant creditors. 

Zhonglun W&D Law Firm was engaged by CFLD to form a dedicated legal team, including partner Runhong Zhang and several specialized lawyers, providing comprehensive, high-quality, and efficient legal services for the establishment of this trust.

Since the rise of risk disposal trusts in 2022, this sector has maintained strong momentum, with an increasing number of trust companies and projects successfully implementing such solutions. With the further emphasis on asset service trusts under the new “Three Categories” regulatory framework for the trust industry in 2023, risk disposal trust business—as a key subcategory of asset service trusts—has introduced innovative solutions and financial “tools” to the debt relief and bankruptcy restructuring needs of market entities amid economic downturns.