Debt-ridden Anxin Trust gets government bailout

China’s embattled Anxin Trust will sell ownership to state-backed investors as part of a restructuring plan to solve its two-year-old debt crisis, the company disclosed Tuesday in a filing, reported Caixin.

Anxin will sell a controlling stake through a private placement to a company called Shanghai Di’an Co., the trust company said. Shanghai Di’an is a newly formed entity jointly owned by Shanghai government-backed Shanghai Electric Group, Shanghai Guosheng Assets, Shanghai International Group, Shanghai Airport Authority and the China Trust Protection Fund, which operates a state-backed bailout fund for trust companies.

In the filing, Anxin also said it reached an agreement with the Shanghai branch of Bank of China to settle a debt dispute. Under the agreement, Anxin will transfer part of its assets to the bank to repay the debt. Anxin didn’t disclose the amount of the debt.