As Caixin mentioned, Suning.com It receives a lifeline worth 5 billion yuan ($685 million) from City Trust and China Huarong Asset Management, with support from the state, to help revive their business. Citic Trust and China Huarong will invest money in Suning over 10 years to help revive the Nanjing giant.
The initial tranche of financing will provide relief to Suning’s logistics park projects in Shaoxing, Hangzhou, Nanjing and Chengdu, with the aim of renovating and revitalizing the projects, Citic Trust said in a statement. The investment will also help revamp Suning through debt and equity restructuring.
In August, Suning revealed that it would receive 1.5 billion yuan from China Huarong through a credit plan managed by Citic Trust. Sonning said the investment would last six years in an attempt to ease pressure on the company’s logistics business.
It’s not just good news for the company he founded Zhang Jindong: Caixin has already learned that many creditors, incl Oaktree Capital Management And Bain CapitalMultiple lawsuits have been filed against Suning.
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