Nov 19, 2020 08:31 PMFINANCE
Creditors Approve Restructuring of Indebted Peking University-Linked Conglomerate
https://www.caixinglobal.com/2020-11-19/creditors-approve-restructuring-of-indebted-peking-university-linked-conglomerate-101630266.html
Creditors of Peking University Founder Group Corp. (PUFG) have approved a plan to restructure the state-owned industrial and investment conglomerate, making another step forward in efforts to resolve its nearly 150 billion yuan ($22 billion) debt pile.
About four-fifths of the 446 creditors with voting rights who attended an October meeting voted in favor of the plan, according to a PUFG statement (link in Chinese) released Thursday. Under the plan, PUFG will merge with three subsidiaries and one affiliate.
PUFG, which is owned by Peking University, one of China’s oldest and most prestigious tertiary institutions, rocked the market in December 2019 by failing to repay a 2 billion yuan bond. The default underscored the financial squeeze on Chinese businesses amid slowing economic growth, and especially concerns about the weak finances of debt-laden business arms of Chinese universities.