(Bloomberg) -- Goho Asset Management Co., a distressed-asset management firm backed by the government of China’s Anhui province, has resolved outstanding debt obligations through mediation or repayment, according to a post on its Wechat account published on Friday.

The company, which has 4.96 billion yuan ($694 million) under management, acquires and restructures distressed assets to rescue troubled businesses and mitigate financial risks, according to its 2022 annual report.

The announcement came shortly after shadow-banking giant Zhongzhi Enterprise Group Co. filed for bankruptcy on Friday evening. China’s property crisis continues to wreak havoc on the world’s second-largest economy. 

Chinese media reported Goho had submitted filings to the Shanghai and Shenzhen stock exchanges on Jan. 2 that said it was unable to pay debts of more than 298 million yuan because returns from some of the company’s assets failed to meet expectations. This led to some of the company’s assets being frozen and confiscated, the reports said.

The Jan. 2 filings could no longer be found on the stock exchanges as of Saturday.

The filings were made to comply with regulators’ inspection and at that time, the debts were not resolved, Goho’s WeChat post said. The firm is operating normally, has resolved the outstanding obligations mentioned in the filings and is actively trying to address other debt issues through the legal system, the post said.  

©2024 Bloomberg L.P.