Recently, Chinese company Winsway Enterprises Holdings Ltd., a major metallurgical coal importer, trader and processor, announced that it had filed for Chapter 15 bankruptcy protection in the U.S. According to The Wall Street Journal, the bankruptcy petition was part of a proposed agreement with its bondholders to refinance over $349 million in debt.
Winsway Enterprises moves to shield its assets
Winsway Enterprises sought Chapter 15 bankruptcy protection in the U.S. Bankruptcy Court in New York after several years of financial losses in its coal operations. These losses were directly tied to the significant drop in demand for Chinese steel. In fact, since the second quarter of 2015, Winsway has lost roughly $204 million on $438 million in revenues. At the time of its recent filing, the company’s debt bonds were set to mature, which would have sent Winsway into insolvency.
The Chapter 15 bankruptcy petition would allow it to shield its U.S. assets from bondholders while it continues to work out financial troubles in Chinese courts. If its petition is approved by the court, the company will be afforded protection under U.S. .
The proposed restructuring plan for Winsway Enterprises
As Winsway’s current coal-trading operations were no longer a viable business, the company’s proposed plan is to become an integrated supply-chain solutions provider for commodities customers and banks. This would effectively transform the company away from its coal-trading business model.
As part of its proposed reorganization plan, bondholders would be given a debt-for-equity swap for roughly $41 million in cash and an 18.75 percent share in the newly restructured company. While this proposal is still being decided in Hong Kong courts, it received support from 83 percent of its bondholders. The deal also calls for bondholders to receive contingent value rights that will offer them an additional $10 million payment in the event the company meets its profit threshold. All told, the deal would effectively offer bondholders 35 cents on the dollar.
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
