SHANGHAI (Reuters – Tsinghua Unigroup’s debt-laden Chinese chip conglomerate Tsinghua Unigroup was set to be taken over by the state. However, its ex-chairman, also a significant investor, claimed that he had received “false” information and defended his restructuring plan.

Unigroup published a notice on its public social media accounts, attributing it to Unigroup management. It linked the company’s debt to Zhao Weiguo’s leadership, which was responsible for a series of asset acquisitions in the past decade.

Zhao retained his position as chairman. However, China’s State Council appointed a working team to replace Zhao after it failed on bond payments in November 2020.

It comes just a day after Zhao posted a memo via Beijing Jiankun. He argued that Beijing Jianguang Asset Management JAC Capital and Wise Road Capital, both state-backed companies poised to acquire Unigroup, undervalued its assets.

Zhao’s Beijing Jiankun owns 49% of Unigroup. The remainder is held by China’s elite Tsinghua University. Unigroup acquired stakes in several Chinese chip firms over the last decade with funding from government.

Unigroup management posted that Zhao’s value via Beijing Jiankun in Unigroup had declined and that the best offers, even after multiple rounds of bidding, could not cover the entire debts of Tsinghua Unigroup.

Unigroup Management stated it strongly opposed Zhao’s effort to “interfere in and affect the judiciary reorganisation process of Unigroup” and that they will take legal actions to ensure the rights of the relevant people.

According to the company, a vote regarding the investment was scheduled for December 29.

Beijing Jiankun failed to respond to an email asking for comments.