Paul Hastings Advises on Successful Completion of RMB3.11 Billion Zhu Kuan Debt Restructuring

September 28, 2009

Hong Kong (September 28, 2009) Paul, Hastings, Janofsky & Walker, a leading global law firm, announced today that it has advised the Zhuhai Municipal Government, Zhuhai Gouyuan Investment Limited and Zhuhai Zhu Kuan Group Holdings Limited on the successful completion of an RMB3.11 billion (approximately US$455 million) debt restructuring by Zhu Kuan (Hong Kong) Company Limited and Zhu Kuan Group Company Limited (Zhu Kuan), both window companies of the Zhuhai Municipal Government in Hong Kong and Macau, respectively.

The restructuring originated from the economic turmoil in Asia in 1997 resulting in the appointment of provisional liquidators in August 2003. Zhu Kuan had approximately HK$8 billion (approximately US$1.17 billion) in debt and a total of 47 bank and financial creditors located in the PRC, Hong Kong and Macau. This is the first ever three-way restructuring of its kind involving the PRC, Hong Kong and Macau.

Chau Ho, a partner in the Hong Kong office of Paul Hastings, commented: We are delighted to have successfully completed this long-running restructuring on behalf of one of our most important clients. This is one of the most complex and high profile restructurings to ever take place in Asia and has taken many years to successfully complete. Because of the multiple jurisdictions involved, the restructuring included a variety of unique legal issues each of which required cutting-edge solutions in order to achieve our clients objectives.

The Paul Hastings team was led by corporate partners Chau Ho and Raymond Li, assisted by Wilson Yiu.

Further information: The Liquidators and the Zhuhai Municipal Government initiated restructuring talks in 2004 and again in August 2006, resulting in a debt restructuring agreement that was entered into by 10 secured financial creditors, Zhuhai Gouyuan Investment Limited, a national enterprise controlled by the Zhuhai Municipal Government, and the Liquidators. In October 2007, the High Court of Hong Kong sanctioned the Schemes of Arrangement.

In May 2009, the Court of Macau also approved the Schemes of Arrangement in Macau. This is the first corporate debt-restructuring approved by the Macau Court in Macau.

Paul, Hastings, Janofsky & Walker is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.