Lawyers of Fidelity Law Firm (hereinafter referred to as “Fidelity” for short) who professionally provide legal services related to non-performing assets have been devoted into expanding and developing the business of management and disposal of non-performing assets since Year 2000, and thus established Non-performing Assets Legal Affairs Department. After years of precipitation, Fidelity has set up a professional team specialized in management and disposal of non-performing assets, and based on which, built “Fidelity Special Assets Team” by integrating the resource of headquarters and branch offices distributed all over, specializing in the business related to non-performing assets.

In recent years, Fidelity has established offices in Xiamen, Fuzhou, Quanzhou, Longyan, Zhangzhou, Sanming, Putian, Ningde of Fujian Province as well as in Shanghai (the office in Nanping is under preparation), building an all-embracing and multi-level legal service system. The legal service network of Fidelity has covered the whole Western Taiwan Straits Economic Zone, extending actively to the other first-tier and second-tier cities of the country. Meanwhile, Fidelity has cooperated with foreign law firms and law firms in the area of Hong Kong, Macao and Taiwan to conduct joint operation, getting a foothold in Western Taiwan Straits, having the whole world in view, and assisting the clients in cross-border recourse of non-performing assets. Professional team of lawyers of Fidelity specialized in management and disposal of non-performing assets seizes the opportunity to create a platform for integrated legal services related to non-performing assets including investment and financing, transaction, recourse and high-end disposal as well as resource integration.

Lawyers of Fidelity specialized in management and disposal of non-performing assets are not only versed in the theoretical knowledge of Property Law, Contract Law, Tort Liability Law, Company Law, Enterprise Bankruptcy Law, Tax Law, etc, but also have the academic background in economy, accounting and taxation partly, who constitute the talents reserve for providing legal services related to non-performing assets. Lawyers of Fidelity specialized in management and disposal of non-performing assets have excellent professional skills and abundant practical experience, and also outstanding communication and coordination skills as well as capacity of resource integration.

Lawyers of Fidelity specialized in management and disposal of non-performing assets are good at creating a unique way. They have successfully assisted the clients in demanding the performance of obligation from the second debtor, auction of the pledged assets and recourse of assets by in-depth and comprehensive application of litigation, execution and other measures of adding debtors, such as utilizing the right of subrogation of creditor, right of revocation of creditor, invalidation of contract, exclusion of obstacles to the execution of lease contract and other litigation or execution measures. They have successfully assisted the clients in claims against the shareholders, senior management personnel, actual controllers and members of liquidation group of the debtor by piercing the corporate veil, altering and adding the person subject to enforcement and other litigation and execution measures,which have enhanced the effect of recovery and recourse. At the same time, they have promoted the high-end disposal of non-performing assets by liquidation, reorganization, mergers and acquisitions, non-performing asset securitization, creatively combining with debt-to-equity swap, liquidation & insolvency, asset securitization and other legal means. Over these years, lawyers of Fidelity specialized in management and disposal of non-performing assets have provided numerous excellent, high-efficient and professional legal services in management, investment and disposal of non-performing assets for financial institutions, asset management companies, non-performing assets investment enterprises and individuals.

Scope of legal services provided by Non-performing Assets Legal Affairs Department of Fidelity

I. Due diligence to non-performing assets

Providing legal due diligence service to non-performing assets status, providing basic information for making decisions on non-performing assets package, transaction and recourse etc..

II. Non-performing assets investment

Providing legal analysis and advice to non-performing assets investment based on the investigation to non-performing assets status, assisting to complete the transaction of non-performing assets.

III. Non-performing assets management

Providing whole-process management service covering non-performing assets package, transaction, recourse and maintenance.

IV. Non-performing assets investment disposal

Providing legal services including non-performing assets package, transaction and recourse, providing legal services of high-end disposal, such as liquidation, reorganization, mergers and acquisitions, asset securitization, debt-to-equity swap related to non-performing assets.

V. Other businesses related to non-performing assets

Main achievements of Non-performing Assets Legal Affairs Department of Fidelity

Year 2005: Assisting Crosstown China Investments 2, LLC to successfully recover the claims on non-performing assets against Xiamen XXX Company with the amount of hundreds of millions yuan;

Year 2006: Providing legal services including due diligence and legal opinion etc. to Avenue Capital in acquisition of the distressed debt disposal project of Industrial and Commercial Bank of China;

Year 2007: Providing legal services including due diligence and execution disposal etc. to China Orient Asset Management Co., Ltd. in the compulsory execution of distressed debt of Bank of China Fujian Branch;

Since Year 2007: Handling the cases of liquidating corporate loans and individual loans for China Minsheng Banking Corp., Ltd. Quanzhou Branch and serving as its regular legal counsel from Year 2015 to Year 2016; representing China Minsheng Banking Corp., Ltd. Quanzhou Branch in nearly 100 litigation cases about financial loan contract disputes which including more than 40 cases of liquidating corporate non-performing loans with the amount of money involved exceeding one billion yuan;

Year 2008: Providing debt collection service including legal advice, property survey, litigation and execution to Standard Chartered Bank (China) Limited in recovering the creditor’s rights of financial lease in Xiamen, and successfully recovering all creditor’s rights for the clients;

Year 2010: Promoting the dunning of non-performing assets of nearly 6 hundred million yuan of China Huarong Asset Management Co., Ltd., Fuzhou Office acquired by Xiamen Lusheng Logistics Co., Ltd. by initiating the first compulsory liquidation case of Xiamen Court, and successfully making the shareholders of Xiamen XXX Furniture Co., Ltd. jointly and severally liable for repayment of the company’s debts;

Since Year 2011: Assisting Xiamen Huiyang Investment Co., Ltd. to recover tens of claims of the non-performing assets with total amount reaching 14.5 billion yuan which acquired from Dongxin United Asset Management Co., Ltd. (the biggest non-performing assets acquisition in Fujian Province throughout history), achieving good results by piercing the corporate veil and holding the shareholders accountable;

Since Year 2013: Representing Industrial and Commercial Bank of China Xiamen Branch, Xiamen Jimei Sub-branch and Fuzhou Fuqing Sub-branch in more than 20 litigation and arbitration cases about financial loan contract disputes;

Since Year 2014: Representing Xiamen Rural Commercial Bank in more than 10 litigation and arbitration cases about financial loan contract disputes;

Since Year 2014: Representing Industrial Bank Co., Ltd. Ningde Branch, Fu’an Sub-branch and Xiapu Sub-branch in more than 70 litigation cases about financial loan contract disputes;

Since Year 2015: Providing legal services including due diligence and debt collection etc. for tens of billions non-performing assets acquired by Shoreline Capital and Lakeshore Capital;

From Year 2014 to Year 2015: Representing Industrial Bank Co., Ltd. Quanzhou Branch in the liquidation of corporate loans and individual loans, of which, the amount of corporate loans is hundreds of millions yuan; meanwhile providing the service of due diligence to non-performing loans, and the amount involved in due diligence to the transfer of non-performing assets is hundreds of millions yuan;

Since Year 2015: Representing China Everbright Bank Quanzhou Branch in the liquidation of corporate loans and individual loans, representing China Everbright Bank Quanzhou Branch in tens of litigation cases about financial loan contract disputes so far, the amount of which is hundreds of millions yuan;

Since Year 2015: Providing the service of due diligence to Ping An Bank Quanzhou Branch and representing it in litigation cases about financial loan contract disputes;

Since Year 2015: Serving as regular legal counsel of Xiamen International Bank Quanzhou Branch and representing it in litigation cases about financial loan contract disputes;

Since Year 2013: Handling insurance contract disputes cases for People’s Insurance Company of China Quanzhou Branch;

Since Year 2015: Acting for People’s Insurance Company of China Quanzhou Branch and its subsidiaries in the recovery affairs after insurance claims, and as of Year 2018, nearly three hundred cases are handled in total;

Since Year 2015: Providing legal services to Shanghai Pudong Development Bank Quanzhou Branch, handling over ten cases as an agent, the amount of which is hundreds of millions yuan;

Since Year 2015: Representing DBS Bank (China) Limited Guangzhou Branch in litigation cases about financial loan contract disputes;

Since Year 2016: Representing China Minsheng Banking Corp., Ltd. Fuzhou Branch and Xiamen Branch in more than 50 cases about financial loan contract disputes;

Since Year 2016: Representing China Merchants Bank Xiamen Branch, Zhangzhou Branch, Longyan Branch and Quanzhou Branch in tens of cases about financial loan contract disputes and non-litigation legal affairs of assets restructuring;

Since Year 2017: Representing China Huarong Asset Management Co., Ltd. Fujian Branch in the financial contract dispute case with Fujian Quanhao Real Estate Development Co., Ltd. and Fujian Goldlong Real Estate Development Co., Ltd., the amount of which is more than three hundred million yuan;

Since Year 2017: Providing litigation legal services to China Everbright Bank Zhangzhou Sub-branch, taking charge of the liquidation of corporate loans and individual loans, the amount of which exceeding two hundred million yuan;

Since Year 2017: Providing litigation and non-litigation legal services to China Huarong Asset Management Co., Ltd. Fujian Branch, taking charge of the liquidation of non-performing assets of companies in Zhangzhou, the amount of which exceeding hundreds of millions yuan;

Since Year 2018: Providing litigation legal services to Ping An Insurance (Group) Company of China, Ltd., taking charge of the litigation about right of recourse after relevant guarantee insurance contracts are claimed for loss in Zhangzhou;

Since Year 2016: Issuing due diligence report and legal opinion for SULI YINFENG AUTO LOANS SERIES 2016-2~2018-2 (total 5 phases of mortgage-backed securities) of Mercedes-Benz Auto Finance Ltd., with total issuing scale over CNY 31.086 billion yuan and product credit rating as AAA;

Since Year 2018: Providing review of legal instruments for Asset-backed Notes 2018-1 issued by Xiamen Hengchi Huitong Financial Lease Co., Ltd. in trust mode, taking financial lease auto loan as underlying assets;

Participating in Huifu—Dynasty Fuxin Account Receivables Debt Financing Plan 2018-1 upon the authorization of Xiamen Dynasty Property Group Co., Ltd., acting as special legal counsel of Xiamen Dynasty Property Group for the first issue of Account Receivables Debt Financing Plan (House Purchasing Balance Payment ABS), boosting the successful listing and issuance at Beijing Financial Assets Exchange;

Year 2018: Representing Fujian Jiayuan Construction Engineering Co., Ltd. (chairman of creditors’ meeting) in the execution-to-insolvency reorganization case of Youxi County Kaiyue Real Estate Development Co., Ltd., the execution-to-insolvency reorganization case of Youxi County Shanhai Hotel Co., Ltd.;

Year 2019: Representing China CITIC Bank Co., Ltd. Xiamen Branch (chairman of creditors’ meeting) in the bankruptcy liquidation case of Xiamen Tuoxingcheng Group Co., Ltd.;

Since Year 2019: Providing due diligence to a large number of non-performing assets all over Fujian Province to Ningbo Financial Asset Management Co., Ltd.;

Providing legal services including but not limited to due diligence, debt collection, transfer of right to earnings and transaction support to China Cinda Asset Management Co., Ltd., China Orient Asset Management Co., Ltd., China Huarong Asset Management Co., Ltd., China Great Wall Asset Management Co., Ltd., Fujian Mintou Asset Management Co., Ltd., China Industrial Asset Management Co., Ltd., Xiamen Asset Management Co., Ltd., Zhejiang Zheshang Asset Management Co., Ltd., Ningbo Financial Asset Management Co., Ltd., Shoreline Capital, Lakeshore Capital and other asset management companies as well as other investment clients.