On March 9th, the low-level area of Langu Town in Lukou District, Zhuzhou City, started resuming construction. The project started construction in 2019, but due to the developer’s inability to complete the completion and delivery, and the policy of guaranteed delivery buildings not benefiting non affordable housing projects, as well as the lack of remaining saleable assets, it was difficult to introduce external financing. As a result, the resumption of work in the low rise area of Blue Valley Town was deadlocked.
After Sun Chuangqian, the director team of Hunan Yingqi Law Firm, served as the administrator of the bankruptcy reorganization case, under the guidance of the Zhuzhou Intermediate People’s Court, they creatively adopted self raised common interest bonds by the owners, guided the bankrupt enterprise to sign a common interest debt loan agreement with the homebuyer in accordance with the law, completed the legal recognition procedure of common interest debts, and clarified the priority order of self raised funds by the owners in the bankruptcy reorganization procedure; At the same time, specific assets such as accounts receivable in the lower level area of Blue Valley Town will be used as collateral for this joint benefit debt, ensuring the realization of the owner’s self raised joint benefit debt.
Li Yang, the on-site person in charge of the bankruptcy reorganization case and the director of Yingqi Zhuzhou Branch, stated in an interview with Zhuzhou TV that self raising common interest bonds for self rescue is an innovative example of real estate enterprises using self raised funds to initiate reconstruction and continuation in a timely manner when faced with a shortage of funds. It not only minimizes the delivery time but also boosts confidence in the entire reorganization area.