In 2015, the project company acquired the Hunan asset package mainly composed of real estate creditor’s rights. This asset package has relatively adequate collateral, including 227,000 m2 of construction in progress, land and completed apartments and shops, mainly distributed in Changsha and Hengyang, with a total amount of creditor’s rights reaching RMB 2.2 billion.

In the early transfer period, the project company conducted a comprehensive and careful assessment of the enterprises in the asset package. It was concluded that although there are risks that some debt enterprises are involved in violation of law and the expected realization time may be extended, the debt enterprises have a strong repayment ability, sufficient collateral of relatively high value. It’s highly likely to realize rapid realization through reasonable operation and disposal.

In the process of disposal, the company’s team repeatedly consulted with the debt enterprises in a short period of time in combination with subjective and objective factors such as the characteristics of the project’s assets, the information of the debtors and the information of the pledge and collateral. Meanwhile, the judicial preservation procedure was actively promoted to ensure that the rights and interests of creditor’s rights are not damaged, so as to prevent the third party in good faith from seizing the debt assets and thus losing the priority right of compensation.

Over a period of one and a half years, the project realized the recovery of the acquisition costs with a final recovery rate of 75%, successfully maximizing the value of disposal and recovery.