Zhang Lan was convicted of fraudulent asset transfer; a $29.1 million painting was seized by an American court!

Years-long Qiao Jiang Nan equity acquisition dispute reaches a key judicial development.

The Southern District Court of New York on March 24, 2026, ordered the seizure of two paintings owned by Qiao Jiang Nan founder Zhang Lan, with a total value of $29.1 million, on the grounds that the court found her actions constituted “fraudulent asset transfer” aimed at avoiding massive debts to private equity fund CVC Capital Partners.

The origin of the debt, a acquisition from ten years ago
The case traces back to a sensational acquisition at the end of 2013. At that time, the European private equity firm CVC Capital acquired 82.7% of Qiao Jiang Nan, a high-end restaurant brand founded by Zhang Lan, for approximately $286 million.

However, this “marriage” quickly fell apart. CVC subsequently accused Zhang Lan of financial fraud during the transaction, which led to losses on its investment, and filed arbitration in 2015.
In 2019, the Hong Kong International Arbitration Centre ruled that Zhang Lan must pay CVC about $142 million (approximately 980 million RMB) in damages and interest.

In 2021, the Second International Commercial Court of China’s Supreme People’s Court upheld this ruling, giving the debt binding legal effect.
Transfer of paintings, an attempt to conceal massive assets
As Zhang Lan failed to fulfill her debt obligations, CVC launched a global asset recovery campaign, with the most notable being these two priceless paintings.

According to court documents and media reports, these two paintings are Andy Warhol’s “Little Electric Chair” and an untitled self-portrait by German artist Martin Kippenberger. In 2014, Zhang Lan purchased them at Christie’s auction house in New York for a total of $29.1 million (about 200 million RMB).
However, CVC discovered and accused Zhang Lan of suspicious operations shortly after the purchase. The court found that although the funds for the paintings came from Zhang Lan’s personal bank account, she transferred the payment through her son Wang Xiaofei’s account to Christie’s, and requested the auction house to change the buyer registration name to a company where Wang Xiaofei was the sole shareholder.
The court determined that this operation, occurring during a critical period of debt dispute escalation, aimed to strip high-value assets from her name, constituting a “fraudulent transfer.” On March 24, 2026, the U.S. court officially issued an order to seize these two transferred paintings.
Global debt collection, family trusts, and overseas assets being “pierced” one after another
The seizure of these paintings is not the first time Zhang Lan has lost in overseas asset recovery.

Previously, CVC successfully applied to “pierce” the family trust established by Zhang Lan in Singapore. The Singapore High Court found that although Zhang Lan set up the trust, she maintained absolute control over the trust assets and could issue instructions to transfer funds for personal expenses, causing the trust’s asset isolation function to fail. Approximately $55.37 million in assets were seized. Additionally, her luxury apartment in New York has been auctioned off to cover debts.
To date, CVC has controlled or recovered assets worth over $80 million through legal actions in Singapore, the U.S., and other jurisdictions, but still falls short of the $142 million principal plus interest.
This ruling means that once the court further issues an “asset delivery order,” these two seized paintings by Warhol and Kippenberger will be officially auctioned, and the proceeds will be used to repay Zhang Lan’s debt to CVC. This decade-long, cross-Asia, Europe, and America capital game is entering its enforcement phase as the debtor’s global assets are gradually revealed and frozen.