Dentons advises Tianjin Good Hand Railway on obtaining approval for its reorganization plan

On January 23, 2019, the draft of the bankruptcy reorganization plan of Tianjin Good Hand Railway Holding Co., Ltd. (GH Railway) was approved by the creditors' meeting and the investor group meeting, marking a significant breakthrough in GH Railway's bankruptcy reorganization work which has continued for more than two years.

GH Railway was originally listed on the Shenzhen Stock Exchange (stock code: 000594) and was delisted in May 2015 due to continuous losses. After that, the company got listed on the NEEQ (stock code: 400064). According to public information, GH Railway has a total equity capital of 1.493 billion shares, and a total number of more than 70,000 shareholders.

The reorganization of GH Railway was officially launched in December 2016. During this period, the court confirmed that the total amount of ordinary creditors' claims was as high as RMB 3.62 billion, with a total of more than 80 creditors. In the past two years, GH Railway held three meetings of creditors and two meetings of investor group. Although the first Reorganization Plan (Draft) submitted was not approved, by virtue of the efforts of all involving parties, the readjusted Plan was finally approved by the third session of the creditors' meeting and the second session of the investor group's meeting on January 23, 2019.

A Dentons team led by Shanghai senior partner Xu Dan, assisted by associates Ding Xin, Zhang Dong and Gao Xiaolan, and paralegals Zhang Xinyu and Chen Lin, acted as the legal advisor for GH Railway and provided a full scope legal assistance on this reorganization program. The team worked closely with the court and the administrator, and provided professional, comprehensive and high-quality legal services on various aspects, including asset liquidation, creditor review, information disclosure, drafting and revision of the reorganization plan, and preparation of the meetings of creditors.

Building on the idea of "reorganization + asset exchange-in", GH Railway put forward a plan to restore its future sustainable capacity of operation by exchanging in high-quality assets. Although the reorganization work was difficult and time-consuming, with the joint efforts of the major shareholders and the leadership team of GH Railway and the Dentons team and all other involving parties, the reorganization plan (draft) of GH Railway successfully obtained the required approval.