(Yicai Global) Dec. 25 -- The Great Wall Film and Culture Group run by father and son duo Zhao Ruiyong and Zhao Feifan has negotiated a cash injection of CNY1.5 billion (USD214.4 million) and the transfer of physical assets worth CNY2 billion (USD286 million) as it takes steps to tackle a debt crisis engulfing its listed subsidiaries.

Hangzhou-based Great Wall Group has reached an agreement with investment firms Shaanxi Zhongtou Asset Management and Anhui Laofenghuang Holdings to help with its debt restructuring, according to statements from units Great Wall Movie and Television and Great Wall International Animation Comic Game yesterday.

Zhangjiagang, Jiangsu province-based Great Wall Movie's stock price [SHE:002071] shot up 9.89 percent to reach CNY3.89 (USD0.55) this afternoon while shares in Chengdu-based Great Wall International [SHE: 000835] hit the upper limit of 10 percent on market opening today to reach CNY5.46.

This follows months of litigation against Great Wall Movie which is being pursued for unpaid debts of CNY130 million to China Construction Bank and CNY100 million to the Bank of Communications. Other units Great Wall International, Tianmushan Pharmaceutical and Great Wall Belt and Road Holdings are involved in another 20 lawsuits.

On Dec. 23 the Intermediate People's Court of Hangzhou Municipality upped the ante by offering up to CNY26 million (USD3.7 million), or 10 percent of the amount outstanding to China Construction Bank per defendant, in reward money for any information on assets, such as real estate, stocks and deposits, hidden by the father and son team.

The fresh financing will not change the controlling structure of the group, according to the statement. Chairman Zhao Ruiyong will continue to hold a 66.7 percent stake and his son the remainder.

Editor: Kim Taylor