In the context of the continuous downturn in the Chinese real estate industry and many developers facing difficulties, the restructuring plan of the former star real estate enterprise Golden Land Group (* ST Jinke) has made significant progress.
On May 11th, Golden Land Group and its wholly-owned subsidiary Chongqing Golden Land Real Estate Development Co., Ltd. both received a ruling from the Fifth Intermediate People’s Court of Chongqing, approving their restructuring plan and terminating the restructuring process.
This marks the formal entry of Golden Land Group into the restructuring execution phase, becoming the first large listed real estate firm in China to resolve risks through judicial restructuring.
The restructuring case of Golden Land Group and Chongqing Golden Land involves a debt scale of up to 147 billion yuan, with over 8,400 creditors. Not only is it the largest restructuring case in the A-share real estate industry to date, but it also sets a record for restructuring cases in Chongqing City.
As early as May 2023, the board of directors of Golden Land Group had proposed the idea of actively applying for restructuring and pre-reorganization to the court. In February 2024, Golden Land Group officially submitted the restructuring application to the court. Subsequently, after multiple rounds of screening and negotiations, Shanghai Pinqi Management Consulting Co., Ltd. and Beijing Tianqiao Greenland Real Estate Development Co., Ltd. formed a consortium and were eventually confirmed as the restructuring investors in November 2024.
In order to advance the restructuring smoothly, Golden Land Group also introduced several industrial investors such as China Great Wall Assets and Sichuan Development Securities Fund, and successfully signed contracts with more than twenty financial investors. The restructuring investors subscribed to 30 billion shares of the company’s capital reserve for 2.628 billion yuan. In addition, the consortium also committed to providing an additional loan of no less than 750 million yuan to supplement Golden Land Group’s working capital and new project investments.
Although the restructuring plan has been approved, the subsequent restructuring execution of Golden Land Group still faces many challenges. How to properly handle debt repayment, restore market confidence, revitalize business development, and other issues will be the key issues that Golden Land Group needs to address in the future.
In recent years, against the backdrop of China’s slower economic growth and the continuous downturn in the real estate industry, including Golden Land Group, many real estate enterprises have faced funding gaps and mounting debts. Due to factors such as a large number of creditors, complex debt structures, difficulties in asset disposal, and the arduous task of “ensuring delivery of housing,” the success rate of real estate enterprise restructuring is not high.