China's Nonperforming Loans Cross-border Resolution



We focus on resolving China’s non-performing loans (NPLs) through cross-border debt collection and offshore asset recovery.

I. What do we resolve?

Chinese creditors, such as banks, asset managers, investment trusts and private lenders, are accelerating NPLs resolution.

With our help, some of the creditors have started to turn their attention to debtors’ assets outside China.

Many Chinese debtors with NPLs own large amounts of offshore assets, and most of Chinese creditors do not have the ability to recover these assets.

Therefore, these assets often escape the restructuring of NPLs in China.

We complement Chinese debtors with global collection capabilities, working with international partners to serve them.

We offer the following services to Chinese creditors:

  • Global Asset Tracking: Investigate the debtor’s offshore assets and locate the debtors.
  • Asset Recovery: Compensate creditors through legal means (including overseas enforcement of Chinese judgments and awards).
  • Litigation funding: Matching litigation funders with Chinese creditors for asset recovery.

II. How to participate in China’s NPLs Resolution?

For international partners, the cross-border resolution of China’s NPLs offers numerous opportunities:

1. Investigative agencies can help Chinese creditors trace debtors’ assets scattered around the world.

2. Lawyers can assist Chinese creditors in recovering these assets.

3. Litigation funders can invest in Chinese offshore debt collection, as many Chinese financial institutions do not have sufficient budget for it.

For Chinese creditors, with our help and the services of the international partners, NPLs can be resolved to a certain extent, and thus the risks can be contained.

We welcome more international partners to cooperate with us and share the huge opportunities for cross-border NPL resolution in China, such as asset investigation agencies, lawyers and litigation funders.

III. Typical Cases

1. A Chinese real estate company owed a loan of RMB 1 billion to a local financial institution in China, and the actual controller took the guarantee responsibility for these loans. The actual controller is located in Australia, and the assets are distributed in the United States, Australia and BVI. We were in charge of the tracing of the actual controller and the facilitation of the negotiations with the creditors.

2. A Chinese listed company issued tens of millions of dollars in bonds, which later accumulated to more than $200 million including interest. These bonds are guaranteed by its actual controller. Due to a debt crisis, the company was liquidated. The actual controller and his personal assets outside China were not included in the bankruptcy. We assist the liquidator in locating these assets and enforcing judgments outside of China, ultimately resulting in a settlement between the actual controller and the liquidator.

3. A Chinese company went bankrupt, but it had invested in mining and agricultural assets in Malaysia, Indonesia and Mongolia. The Chinese receiver has no control over these offshore assets, which are actually controlled by its CEO, who lives in Singapore. We were hired to identify these assets by the company’s creditor, a Chinese state-owned non-performing asset company.

4. A Chinese mining company invested in a copper mine, road and terminal in an African country. The investment failed and the costs were not recovered due to disagreements with local partners. We helped the Chinese company, working with local African law firms, to arbitrate.

IV. Who are we?

Our team comes from:

1. Chinese lawyers who are specialized in the non-performing loan business. They come from China’s top law firms, such as Dentons(Dacheng), Hylands, Tianyuan, Zhongwen, Yingke, etc. Almost all major creditors of China’s NPLs are clients of these firms.

2. Dealmakers for the disposal of NPLs, they connect most of the banks, asset management companies, etc. in China.

3. Cross-border debt collection experts who are good at working with international partners in global asset investigation, cross-border litigation and enforcement, and litigation funding.

Yu Du Consulting was founded in 2019, and initially dealt with China-related cross-border trade disputes and accounts receivable collection.

In 2020, we quickly turned our attention to this area when we realized that Chinese creditors had a strong demand for cross-border bad debt collection.

Now, together with our legal team, we have served many Chinese financial institutions, including but not limited to:

Huarong(China Citic Financial Asset Management)

  • CITIC Bank
  • GF Securities
  • Ping An Bank
  • Ping An Trust
  • China Minsheng Bank
  • China Everbright Bank
  • Minmetals International Trust
  • Lujiazui International Trust