Deloitte China Advises Offshore Lenders from Multiple Countries and Regions in a Successful Cross-Border Debt Restructuring of a Leading Chinese Copper Refinery

The target group, which was once the leading privately owned copper refinery in China, experienced a major liquidity and debt crisis after the commodity price crashed since 2018. The Group owed debts to over 480 creditors, including over 40 onshore and offshore large banks and financial institutions.

A judicial restructuring process in the People's Republic of China ("JR"), supported by the offshore lenders, was used to implement a restructuring involving a sale of the business to an investor, a debt for equity swap and a debt compromise with onshore and offshore creditors.

Deloitte China’s restructuring team, who acted as financial advisor to the offshore lenders, advised more than 20 international financiers from different countries and regions in Mainland China's court-approved restructuring of the Group with a total debt exposure of over RMB30 billion (US$5 billion).

The local Intermediate People's Court was an important part of the JR process by providing guidance, a process for creditors to express their views and ultimately by sanctioning the consensually agreed judicial restructuring plan.

This deal was named one of the  "Deals of the Year 2022" by China Business Law Journal and offers a precedent and a roadmap for Onshore and Offshore Creditors to restructure debts in China.

For more information on Deloitte China’s restructuring services, please contact Deloitte China Value Creation & Crisis Group.