With 12 companies and 18.99 billion creditor's rights, the reorganization plan of Hefei Construction Engineering was approved by the court

On November 5, the Intermediate People's Court of Hefei issued the fifth civil ruling (2025) Wan 01 Po 62, approving the reorganization plan of 12 companies including Hefei Construction Engineering Group Co., Ltd. and terminating the reorganization procedure in accordance with the second paragraph of Article 86 of the Enterprise Bankruptcy Law of the People's Republic of China. So far, this old Anhui construction enterprise with a history of nearly 70 years has gone through the judicial reorganization process of more than one year and seven months, and has been transferred to the implementation stage of the reorganization plan. The 12 main bodies

included in the substantive merger and reorganization are Hefei Construction Group as the core. It covers Anhui Anfeng Construction, Anhui Anfu Construction, Hefei Construction Material and Equipment, Hefei Construction Second Construction Project, Hefei Construction Labor Service, Hefei Netcom Software, Ganzhou Joint Construction Project, Chengdu Wanhe Construction Project, Hefei Construction Material Testing, Bengbu Joint Construction Project and Hefei Yiqi Construction Project. Its business covers construction, labor subcontracting, building materials, quality inspection and other upstream and downstream links. The

predecessor of the company is Hefei Construction Engineering Bureau, which was established in 1958 and renamed in 1991. It holds the special qualification of general contracting for construction projects and has won three Luban Awards for China's construction projects. In terms of equity relationship, Anhui Anliang Holdings holds 99% of the shares, which belong to Conch Group through Anliang Group and International Trade Group, and the actual controller is Anhui SASAC.

The crisis broke out on March 17, 2025. On the same day, Hefei Shuoci Building Materials and Chengdu Kailai Jianfu applied for bankruptcy liquidation on the grounds that they could not pay off their due debts and obviously lacked solvency; Anliang Holdings, the controlling shareholder, applied for reorganization on the grounds that it was insolvent but had the value of reorganization. The Hefei Intermediate People's Court decided to accept the reorganization and appointed Beijing Dacheng Law Firm as the administrator. Because 12 companies are highly confused in assets, personnel, business and debts, on August 19 of the same year, the court ruled that substantive merger and reorganization. Looking at

the family property, the situation is not easy. As of November 2024, the total assets of Hefei Construction Industry were 12.730 billion yuan, the total liabilities were 16.229 billion yuan, the net liabilities gap was about 3.5 billion yuan, and the asset-liability ratio was 127%. According to public reports, during the peak period, more than 70% of the company's projects relied on Evergrande, and the proportion of advance funds exceeded 70%, and the risk of a single customer was eventually transmitted to the whole group. On June 16

, 2026, the first creditors' meeting of the merger and reorganization case was held. 2622 creditors attended the meeting, representing about 18.562 billion yuan of creditor's rights; 616 creditors did not attend the meeting, representing about 431 million yuan of creditor's rights, and the total amount of declared creditor's rights was about 18.99 billion yuan. The voting results announced on July 9 showed that the property secured creditor group, the ordinary creditor group and the investor group voted through, the tax creditor group failed to pass, and the draft reorganization plan was not passed as a whole. The

key step took place in the following four months. In accordance with the second paragraph of Article 86, the administrator shall consult with the voting group and vote again, and the scheme shall be adjusted to meet the statutory approval conditions, and the court shall finally decide to approve it. This clause is the channel reserved by the bankruptcy law for "partial voting group veto", and it is also the most noteworthy procedural detail of the reorganization case. The entry into force of the

reorganization plan means that the debt repayment path and business arrangements have a basis for implementation, and thousands of creditors have received a liquidation schedule. However, there are still difficulties in the follow-up: whether the core project can be resumed, the progress of the liquidation of the creditor groups, and whether the normal operation can be resumed during the implementation period, all need to be observed. According to public information, the company has been listed as the executed person for many times since 2026, and the latest one was filed on November 2, with the execution target of about 39.86 million yuan. As far

as large local construction enterprises are concerned, Hefei Construction Engineering provides a sample: instead of relying on liquidation, it packages 12 highly confused entities into the same procedure and uses a schedule to deal with debt and operation at the same time.