Debt-ridden Tsinghua Unigroup meets creditors to update them on latest restructuring moves
- The once high-flying conglomerate associated with China’s top university entered a bankruptcy restructuring process following a Beijing court order
- Tsinghua Unigroup and its subsidiaries met creditors in a virtual meeting to update them on latest moves in restructuring process
Tsinghua Unigroup and its six subsidiaries met creditors on Monday in a virtual meeting to update them on the latest round of its debt restructuring process, according to a statement from the group on Monday.
The once high-flying conglomerate associated with China’s top university has entered a bankruptcy restructuring process following a Beijing court order after being sued by investors. It began a search in July for deep-pocketed investors for a “complete bailout” to avoid selling its high-worth subsidiaries individually.
Tsinghua Unigroup’s six subsidiaries were included in the group’s August restructuring.
“The restructuring of Tsinghua Unigroup is about to enter its final stage, and identifying strategic investors as soon as possible will lay the foundation for the group to achieve nirvana and rebirth,” according to the Monday update.
Tsinghua Unigroup did not reveal the names of its potential new investors in the statement. Chinese financial news magazine Caixin, citing sources, reported that Alibaba Group Holding, owner of the South China Morning Post, was among seven potential bidders for the group along with several state-backed companies.
Tsinghua Unigroup has said that investors must have the financial ability to take over the entire assets and liabilities of Unigroup and support Unigroup’s key semiconductor and cloud businesses.