Abax Global Capital Limited through Abax Lotus Ltd. and Abax Nai Xin A Ltd. agreed to acquire Shaanxi Xilan Natural Gas Equipment Co.,ltd from China Natural Gas, Inc. (OTCPK:CHNG.Q) for $53.3 million on October 14, 2014. Under the terms of the deal, Abax Global Capital will pay $0.25 million with immediately available funds and $53 million is a reduction in the amount from the aggregate amount of outstanding obligations owed by China Natural Gas, Inc to Abax Lotus Ltd. and Abax Nai Xin A Ltd. In the event of termination, Abax Global Capital will receive a termination fee of $0.03 million. The transaction is subject to approval by bankruptcy court and regulatory approval. The transaction is expected to close within 365 days following entry of sale approval order. Ernst & Young (China) Advisory Limited acted as financial advisor to China Natural Gas, Inc. Alan Nisselson and Leslie S. Barr of Windels Marx Lane & Mittendorf and Louis T. DeLucia of Schiff Hardin LLP acted as legal advisors to China Natural Gas. Adam P. Strochak, Matthew P. Goren and Jacqueline Marcus of Weil, Gotshal & Manges LLP acted as legal advisor to Abax Global Capital.

Abax Global Capital Limited through Abax Lotus Ltd. and Abax Nai Xin A Ltd. cancelled the acquisition of Shaanxi Xilan Natural Gas Equipment Co.,ltd from China Natural Gas, Inc. (OTCPK:CHNG.Q) on October 14, 2015.