On May 28, 2019, the fourth “ZhongYin Lecture
Hall” in 2019 was hosted. In the lecture, Mr. Zheng Huan, a specially invested
expert, shared his experience in practice on the subject “Collection and
Disposal of Leased Distressed Assets”. Our management committee member and
senior partner Liu Zhenyu presided over the lecture. Over 40 attorneys of the firm attended this
lecture on site, and over 140 colleagues From Head And Branch offices
watched this lecture via live webcast.
Mr. Zheng Huan holds a bachelor's degree in law from Law
School of Peking University and a master's degree in banking and financial law
from Boston University. He currently works for a leasing company, is an
arbitrator of China Maritime Arbitration Commission and a researcher of Financing
Lease 30-people Forum. At present, he is a qualified lawyer, qualified PRACTITIONER
in banking industry, and qualified practitioner in securities industry.
In this lecture, starting from the definition and the
ecosystem of distressed assets, Mr. Zheng Huan introduced 5 major modes of disposal
of distressed assets in detail: AMC holding in trust, selling off and counter trusting, bank-bank
mutual holding, transfer of beneficiary rights, and asset securitization +
debt-to-equity + internet channel.
Moreover, by presenting relevant cases and combining
years of work experience, Mr. Zheng Huan thoroughly explained the plan for and disposal of leased distressed
assets and introduced 9 methods, namely financing-to-operational,
debt-to-equity, structural adjustment to rent, additional credit, debt shifting,
transfer + repurchase (other assurance measures), real removal from balance
sheet, recall of leased property, and litigation, and warned against the
regulatory compliance risks in the foregoing methods.
At present, collection and disposal of leased distressed
assets also involves difficult issues such as lease commencement under direct
lease, hypothecation of leased property under sale-leaseback, and bankruptcy of
lessee or guarantor. Mr. Zheng Huan summarized and analyzed these issues one by
one. Finally, Mr. Zheng Huan had a heated discussion with the attorneys present
on the specific issues in the cases of financial lease. He shared valuable knowledge,
both theoretical and practical, and his lecture was well received by everyone.