Latham & Watkins Advises Huachen Energy on Innovative Bond Restructuring and First-Ever U.S. Chapter 15 Recognition of PRC Bankruptcy Reorganization Plan


Huachen Energy Co., Ltd., one of the largest private power generation companies in the People’s Republic of China (PRC), announced that following a substantive hearing on the application of the bankruptcy administrator, the US bankruptcy court has granted recognition of Huachen’s PRC plan of reorganization under Chapter 15 of the United States Bankruptcy Code, along with other ancillary relief requested by the administrator. The bankruptcy court issued an order recognizing the foreign proceeding and granting related relief and, accordingly, the company’s plan of reorganization (including the releases set forth in the plan), together with the order of the Intermediate People’s Council No. 1. Beijing Court approving the plan, are now recognized and fully enforceable in the United States and are binding and fully enforceable in accordance with their terms.

Latham & Watkins advised Huachen Energy Co., Ltd. on the successful restructuring of its US$500 million senior notes governed by New York law, through a PRC bankruptcy reorganization proceeding, coupled with a consent solicitation exercise, and the first-ever recognition under Chapter 15 of a PRC reorganization plan in the United States. At the end of the hearing, the Honorable Justice Beckerman remarked that she was happy to see another case from the PRC as there were “not so many”. The company will now proceed with the remaining steps for the implementation of the note restructuring, which when completed will allow noteholders to receive a restructured note that remains tradable through the clearing systems and the Singapore Stock Exchange, rather than a simple cash payment (highly discounted). .

Latham represented Huachen Energy Co., Ltd. with a cross-border transaction team led by Hong Kong partner Howard Lam, with Hong Kong lawyer Tingfei Fan and partners Flora Innes and Kevin Chow. The US team advising on the Chapter 15 enforcement was led by Chicago/New York partner Caroline Reckler with associates Jeramy Webb and Jon Weichselbaum.


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