Reported about 1 year ago
Lawyer Fang Zhiwei of the National Creditors Association expressed concerns over Penglai Lingyun's absorption of investor debts and subsequent confirmation of the debts, suspecting collusion in the draining of company assets. After Lingyun encountered problems, it entrusted its tower burial plot trusts to Fozuo under National Treasure Group, with a 15-year management contract where Fozuo took a 15% cut and was required to take over Lingyun's rights or assist in continuing contracts. However, investors found their attempts to redeem their investments or receive refunds denied by Fozuo, who instead offered to trade Lingyun debts for tower burial plots at a higher price, exploiting the urgency of Lingyun victims' desire to recover losses. Court rulings have allowed Fozuo to participate in Lingyun's forced execution process and auction off seized assets for money, although current estimates value the company at only over 180 million yuan compared to its actual worth of over 80 billion yuan. Creditors hope to manage operations through forced management to gradually return profits to creditors over time, filing criminal complaints against Lingyun and Fozuo for stripping assets together.
Source: YAHOO