Chinese debt-ridden chip giant Tsinghua Unigroup has received backing from creditors and shareholders to move forward with a restructuring plan that will facilitate strategic investments of RMB 60 billion ($9.42 billion) to aid in the company’s restructuring, reports Caixin. Creditors representing more than 90% of outstanding claims voted in favor of the draft restructuring proposal during a second creditors’ meeting Wednesday, Unigroup said. The company’s two shareholders—Tsinghua Holdings and Beijing Jiankun Investment Group—also backed the proposal, the company said.
Beijing Jiankun, which holds 49% of Unigroup and is controlled by real estate magnate Zhao Weiguo, reversed its opposition to the plan in the final vote. Zhao, who headed Unigroup since 2009, had strongly opposed the plan, which will wipe out the current shareholders’ stakes.
Unigroup earlier this month said a consortium led by two Beijing tech-focused private equity funds—Beijing Jianguang Asset Management (JAC Capital) and Wise Road Capital—will lead the debt restructuring.