Chinese firm Sichuan Trust, which defaulted on billions of dollars in trust products four years ago, has begun to seek investors for its bankruptcy reorganization, reports Caixin. The bankruptcy administrator of Sichuan Trust published a statement on Tuesday inviting investors to take part in the company’s restructuring. The investors will provide funds to resolve the debt risks of Sichuan Trust, optimize its asset structure and ultimately fully restore the normal operations of Sichuan Trust, said the statement.
The troubled trust company in April received approval from the top financial regulator to wind down, becoming China’s second trust firm to go bust.
It failed to repay more than RMB 20 billion ($2.9 billion) in May 2020, triggering a wave of protests by angry investors outside the company’s headquarters in Chengdu, the capital of southwestern China’s Sichuan province. The incident prompted regulators to rein in financing activities in the country’s RMB 3 trillion trust industry.