China’s Tsinghua Unigroup completes debt restructuring, ownership change to keep afloat its major semiconductor operations
- Under new owner Beijing Zhiguangxin Holding, Tsinghua Unigroup gets a new lease on life to run some of the nation’s major semiconductor operations
- Unigroup’s creditor repayment plan involves a cash outlay of US$8.94 billion and various debt-to-equity swaps
Beijing-based Unigroup said it has entered a “new phase” after concluding the business registration of its new equity owner, directors, supervisors and general manager, according to the company’s statement on Monday.
Zhiguangxin’s biggest shareholder, with a 29 per cent stake in the company, is state-owned fund Wuhu Xinhou Yunzhi Equity Investment Partnership from eastern Anhui province. Wuhu Xinhou is an entity controlled by Li, Zhiguangxin’s legal representative, according to business registry records.
Creditors of Unigroup will start to receive cash payments as early as Wednesday, according to the company’s statement. The firm indicated that creditors will be paid between 95 per cent to 100 per cent of what they are owed.
That repayment plan, which involves a cash outlay of 60 billion yuan (US$8.94 billion) and various debt-to-equity swaps, was drawn up by the Wise Road Capital-led consortium of investors in mid-December and approved by all stakeholders later that month, according to Unigroup’s statement. In January, the Beijing First Intermediate Court terminated the company’s debt overhaul process to kick off a six-month execution phase.
The company’s new lease on life has prevented the collapse of a large hi-tech enterprise with businesses that form part of China’s semiconductor supply chain.