ZHH has been long dealing with trust. We maintain long-term good cooperation with a number of professional trusts including Chongqing Trust, New China Trust, Shaanxi International Trust, and Daye Trust, and provide full legal services to our clients for their financing through trust. By designing financing structures as necessary for trusts and financing clients, we have developed and participated in a number of emerging finance trust variants, and designed several internal control systems accordingly, and helped resolve financing for lots of infrastructure projects, share acquisition and Sunshine PE by assembled funds trust and other trusts.
ZHH has a finance team of over 30 partners and key lawyers. A number of partners act as chairmen of All China Lawyers Association and specialized committees on finance of various provinces and cities. Lawyers in the team have generally worked in banking, insurance, trust, securities and other financial institutions. They are familiar with financial laws, regulations and supervision rules. With a deep legal foundation, proficient in financial operation rules and corporate culture and way of thinking, and experienced in financial practices, they can provide companies with financial legal services including banking, petty loan, and non-performing assets disposal.
- to provide daily legal services to trust institutions
- to assist trust institutions in conducting due diligence on financing companies and related projects, and produce legal opinions
- to assist trust institutions in designing the financing transaction structure, and assist in applying for the establishment of a SPV and project operation supervision, etc.as per the determined transaction structure
- to provide companies with legal consulting on financing
- to assist financing companies in participating in negotiations and providing advice and solutions in a timely manner on problems encountered in negotiations
- to assist in drafting, revising and reviewing transaction documents
- to assist trust institutions and companies in resolving risks arising from the financing project through litigation and non-litigation
Latest Typical Projects/Cases
- Legal services to a trust company for its debt restructuring for Jiaxing Zhongrun and Hangzhou Zhongrun with a subject amount of RMB 1.3 billion
A trust company invested RMB 700 million to Jiaxing Zhongrun Project through trust loan, and invested RMB 600 million in Hangzhou Zhongrun Project through the transfer of share income rights. Upon expiration of the financing period for the two projects, the financing entity failed to repay the debt. In order to maximize the interests of the trust client, we assisted a trust company to find a new investor who could take over the two projects, and proposed to transfer the project interests in a package. We assisted the trust company to develop the overall transaction structure, analyzed possible legal risks in detail, and drafted and revised transaction agreements and other instruments.
- Legal services to Chongqing Trust for its share transfer dispute with Songzhi Real Estate and Runyijiang
Chongqing Trust initiated a collective fund trust plan, raising RMB 1 billion funds to invest in the target company's shares, and Songzhi Real Estate and Runyijiang would withdraw trust funds by share transfer. Upon expiration, the two companies failed to repay as agreed. After sending several debt collection notices and without response, we assisted Chongqing Trust to file a preliminary injunction to the court. The court froze the two company's assets quickly, forcing them to negotiate with Chongqing Trust. Finally, the two parties agreed on settlement as required by Chongqing Trust, in a way to resolve disputes in the shortest time and at the lowest cost and achieve the client's litigation purpose.