The second creditors' meeting for the bankruptcy case of Beijing Xingda Pharmaceutical Research Co., Ltd. ("Xingda Company") jointly organized by Beijing DeHeng Law Offices and Reanda Certified Public Accountants was held at Haidian District People's Court of Beijing on April 2, 2019.
Due to poor management, Xingda Company was unable to pay off the mature debts , and became insolvent by April 30, 2018. According to the statement by Xingda, however, the company's valuation would be greatly improved if the company could obtain the drug production license for its core project "Dicycloplatin (DCP)". With the introduction of strategic investors, the company could expect to resume operations. On June 5, 2018, Xingda Company held a special shareholders' meeting. In accordance with the Company Law and the relevant provisions of the company's Articles of Association, the company adopted the resolution by voting to file for bankruptcy reorganization to Haidian Court. On June 15, 2018, Haidian Court accepted the application of Xingda Company for bankruptcy reorganization, and on October 11, 2018, designated DeHeng Law Offices and Reanda Certified Public Accountants (Special General Partnership) as the administrators through open competitive bidding. It issued an acceptance notice to inform the creditors to lodge claims. As of April 1, 2019, a total of 14 creditors filed a total of 29 claims to the administrators, with a total value of more than RMB 900 million.
Lawyer Fan Liya, a partner of DeHeng Beijing office, the head of the DeHeng Bankruptcy and Restructuring Committee and the person in charge of administrators for the bankruptcy reorganization case of Xingda Company, briefed the court and creditors meeting on behalf of the administrators regarding the work since the first creditors' meeting. Lawyer Zhou Jie, a partner of DeHeng Beijing office and a member of the DeHeng Bankruptcy and Restructuring Committee, explained the amendments to the Xingda Company's reorganization plan (draft) and the core content of the draft at the creditors' meeting.
Since the first creditors' meeting for the reorganization of Xingda Company held on November 23, 2018, the administrators performed due diligence and duties, and achieved positive outcomes in debt review, asset verification, drafting of the reorganization plan, among others. The draft reorganization plan fully accommodates and guarantees the interests of all relevant entities of Xingda Company.
For the second creditors' meeting for the reorganization of Xingda Company, DeHeng, as the main party in charge of the reorganization of Xingda Company, was highly recognized by the court and creditors, and will continue to provide professional, high-quality services for customers.