King & Capital's Shenzhen Office Partner Hou Zichun Saves Clients Over 4 Billion Yuan Loss in Real Estate Construction Projects-- A Leader in Real Estate Workouts, Restructuring & Construction Litigat

Time:2020-08-04 Source: The Author: Browse: Print Font Size:T|T
  Long delays and suspended real estate construction projects can cost clients billions in losses of yuan relating to their real estate and construction investments. Mainly, these days large infrastructure projects seemingly sputter and fall apart after the slightest of delays.   With many real estate construction projects on the brink of collapse and litigation, King & Capital's Shenzhen office partner Hou Zichun has saved many projects from failure.  Hou has successfully provided expertise and developed a leading real estate workout and restructuring practice to help major investor clients avoid losses in substantial real investment projects. Hou has been at the forefront of the real estate area with market-leading experience and expertise in the representation of such investor clients. Recently, Hou saved two major real estate construction projects in Zhengzhou from collapse and saved K&C's investment clients from losses estimated at over four billion yuan.

  Our workout and restructuring team led by Hou has represented significant investors from failing real estate investment projects.  Hou has developed effective strategies, combining both offensive and defensive ones, to restructure failing projects.  Litigation can take up to two years in the courts from start to finish. Delays in litigation are often the result of lengthy judicial enforcement procedures, time-consuming cost appraisals, and ineffective auctions that fail to mitigate the parties' losses properly. These processes hasten and enlarge investors' losses rather than reducing these.  With years of business, real estate, and litigation experience, Hou has used business and litigation practices to save stalled real estate and construction projects.  By starting a lawsuit, Hou has found that parties and their legal counsel are then quickly brought back to the bargaining table to focus on resolving critical issues through negotiation. The parties also learn that their mutual interests are to restart the project to minimize losses. Besides, they realize that these days they cannot dispose of a slowed-down asset at a high value.  Hou then develops with all parties a restructuring workout agreement on how to best share capital resources, plan efficient use of human resources and time, and implement and execute such a plan.

  Hou's expertise in real estate and construction workouts and restructuring plans have proved successful in two recent representations. The three-billion yuan real estate project at the Zhengzhou Airport and the one billion yuan landmark project in the Xinxiang New District are exemplary.  The Zhengzhou Airport project stopped for 18 months. Within ten months of engagement and having traveled there for more than ten times, Hou and his team, including lawyers Gao Xiaojie and Zeng Zhuo, committed the owners, lenders, contractors, subcontractors, and government agencies to a workout plan on restructuring the stalled real estate construction project. They recovered for the client hundreds of millions of yuan within a year. The client's projected loss in the investment, of over three billion yuan, was averted.

  K & C Shenzhen partner Hou also saved The Landmark real estate project from collapse.  With a value of 1 billion yuan in the center of Xinxiang New District, the project stalled and was suspended for half a year, during which time the parties failed to reach an agreement.  Hou and his team required only two and a half months for the parties to negotiate the terms of a workout and restructure plan and finalize a deal.

  Real estate workouts and restructurings are the best options in a failing real estate construction project but require the expertise of skilled legal counsel. King & Capital attorneys led by the Shenzhen Office partner Hou Zichun and his team can provide that skilled expertise. Please feel free to reach Hou Zichun at the firm's Shenzhen's office.