What’s up: A Beijing court approved a restructuring plan for state-owned Peking University Founder Group Corp. (PUFG) and four of its units, according to a declaration (link in Chinese) posted Monday by the receiver managing the process.

Why is this important: The court’s approval marks a milestone for the once-high-flying Chinese conglomerate, as it struggles to break out of the debt pile it has racked up during a wild expansion.

With an eye on PUFG’s medical and healthcare assets, Ping An Life Insurance Co. of China Ltd., the life insurance arm of the massive financial conglomerate Ping An Insurance (Group) Co. of China Ltd. (601318.SH), will take a majority stake in a reformed founding group, Caixin Previously reported.

As the restructuring enters a new phase, strategic investors are starting to take over as director, with the registration of the new company underway, a source close to Ping An told Caixin.

The background: PUFG failed to reimburse a 2 billion yuan ($ 309 million) bond in December 2019. In February 2020, Bank of Beijing Co. Ltd., one of its creditors, succeeded request (link in Chinese) the court to force the PUFG to restructuring under bankruptcy law.

As of April 20, a total of 743 creditors had reported to the bankruptcy administrator that a total of 256.2 billion yuan was owed to them by PUFG and four of its units, according to one. draft restructuring plan obtained by Caixin.

Quick Takes are condensed versions of stories related to China for quick news that you can use. To read Caixin’s full article in Chinese, click here.

Related: In Depth: Saving Peking University’s Fallen Tech Conglomerate

Contact reporter Luo Meihan ([email protected]) and editor-in-chief Joshua Dummer ([email protected])

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