Shadow Banking Giant Zhongzhi and 247 Affiliated Firms Face Consolidated Liquidation

Bankruptcy administrator found ‘complex interconnections and significant liabilities’ in dramatic collapse, Beijing court document shows

A bankruptcy administrator on Friday applied to a Beijing court for a consolidated liquidation for Zhongzhi and 247 affiliated firms. Photo: VCG

Embattled Chinese financial conglomerate Zhongzhi Enterprise Group Co. Ltd. and 247 affiliated firms face a consolidated liquidation, latest court proceedings show, underscoring the sweeping impact of the shadow bank’s dramatic collapse.

The request for a consolidated bankruptcy liquidation was filed to the Beijing First Intermediate People’s Court on Friday by Zhongzhi’s bankruptcy administrator Beijing Dacheng Law Offices, citing the companies’ “complex affiliations, widely distributed assets and significant liabilities.”