State-owned assets administration involved in restructuring of China’s Red Sun

On July 28, Chinese agrochemical company Red Sun announced that it received the date of a written notice from the pre-restructuring administrator, revealing that it was decided that Hubei Tongfu Investment would be involved in negotiations with the company’s pre-restructuring strategic investors.

Red Sun said that going forward, Hubei Tongfu Investment will join Red Sun in negotiating with the selected pre-restructuring strategic investor or a designated entity, and will sign relevant investment documents and help improve the pre-restructuring program, which will be submitted at Red Sun’s creditor meeting and investor group meeting for deliberation.

Red Sun said that after the selection of pre-restructuring strategic investors, Hubei Tongfu Investment will fully join and support the company’s pre-restructuring and restructuring activities, which will benefit the progress of the company’s pre-restructuring and restructuring-related process, therefore, facilitating the start of the company’s official restructuring process as soon as possible.

If Red Sun can smoothly implement the re-structuring process and complete the re-structuring program, this will help improve the company’s financial structure, resolve its debt issue, and enable it to get return to its sustained and healthy state of development.

About Hubei Tongfu Investment

According to the announcement, Hubei Tongfu Investment was established in August 2012, being a level-one wholly owned subsidiary of Yichang Industry Investment Holding Group Co., Ltd., which is wholly owned by the state-owned Assets Supervision and Administration Commission of Yichang City.

Hubei Tongfu Investment specializes in investments in green chemicals, clean energy, biomedicine, advanced equipment manufacturing and new-generation information technologies. After years of practical exploration, it has built up a RMB10-billion-yuan private equity portfolio covering Angel investment, venture capital and industry investment, having completed more than 190 investment projects worth more than RMB6.9 billion yuan.