Tsinghua Tongfang subsidiary to recover debt via restructuring

Tsinghua Tongfang's wholly-owned subsidiary, Beijing Tongfang Jizhao Technology Co., Ltd. (Tongfang Jizhao), announced a plan to dispose of its external claims against China Broadcasting Network Group Co., Ltd. Tongfang Jizhao is owed 11,764.44 million yuan for equipment supplied, with an additional 10,054.97 million yuan in overdue interest. China Broadcasting Network, deemed insolvent, is undergoing judicial restructuring, with Tongfang Jizhao filing claims totaling 21,819.41 million yuan.

Under the proposed restructuring, Tongfang Jizhao expects to recover approximately 9,823.73 million yuan. This recovery comprises 1,135.97 million yuan in cash and 8,687.76 million yuan in China Broadcasting Network equity, representing approximately 4.57% of the post-restructuring equity. If completed by the end of 2025, this transaction is projected to generate a debt restructuring gain of 9,439.19 million yuan for Tsinghua Tongfang.

The disposal plan requires approval from the creditors' meeting and the court's final ruling. Investors should be aware of the inherent uncertainties regarding the approval and implementation of the restructuring plan.