Mystery Buyer of Ruyi’s SMCP Stake Spurs Paris Legal Fight

Creditors want to know the identity of the mystery buyer who bought Shandong Ruyi Technology Group Co.’s stake in a large European retailer, because the deal has complicated their efforts to take control and sell the Chinese company’s holdings, Bloomberg News reported. A Paris judge will review Shandong Ruyi’s sale of a 16% stake in retailer SMCP SA, the owner of the Sandro and Maje brands. European creditors, who are chasing Shandong Ruyi for its stake in SMCP after the Chinese company defaulted on debt, asked the shareholder registrar BNP Paribas Securities Services to reveal the name of the buyer. The deal has been described by bondholders as “unlawful.” The hearing is at 3 p.m. local time. The legal proceedings on Tuesday are the latest development in a battle between the Chinese company and creditors, which really ramped up after the Ruyi defaulted on 250 million euros ($290 million) of notes that matured in September. Before then, it tried but failed to negotiate a restructuring deal with creditors, including Anchorage Capital Group and BlackRock Inc. Read more.
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