ZhongYin Lecture Hall: Collection and Disposal of Leased Distressed Assets
Author： Zhong Yin Law Firm
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.
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