On January 30, Yurun Food announced that the reorganization plan of Nanjing Yurun was approved at the creditors' meeting on January 28, 2022 and approved by the ruling of Nanjing Intermediate People's Court on January 28, 2022. Yurun Food no longer owns the equity of 44 enterprises, and the 44 companies involved in the reorganization will be incorporated into the new platform Yurun selection.
Yurun selection promises to be listed in 2027.
In this regard, industry insiders believe that the dust of restructuring is settled, and the high-quality assets such as Yurun Food under Yurun Group can be loaded lightly, but the listing of Yurun will still be a big test.
The reorganization plan was passed by a high vote and the debt was disposed of
The announcement shows that the reorganization plan has been adopted by the property single package bond group, employee creditor's rights group, tax creditor's rights group and ordinary creditor's rights group respectively.
Among them, there were 30 property secured creditors of 44 reorganization companies with voting rights attending the meeting, of which 29 agreed to the reorganization plan. The amount of creditor's rights represented was about 3.285 billion yuan, accounting for 99.72% of the total amount of property secured creditor's rights. There are 36 creditors in the employee creditor group, all of whom agree to the reorganization plan. The amount of creditor's rights represented is about 7.46 million yuan, accounting for 99.63% of the total creditor's rights of employees, more than two-thirds of the total creditor's rights of employees. There are three tax creditors and all agree to the reorganization plan. The amount of creditor's rights represented by them is about 12.68 million yuan, that is, 100% of the total amount of tax creditor's rights. There are 188 ordinary creditors, of which 181 agree to the reorganization plan. The amount of creditor's rights represented by them is about 5.409 billion yuan, accounting for 93.84% of the total ordinary creditor's rights, more than two-thirds of the total ordinary creditor's rights.
It is worth noting that Yurun Food can be loaded lightly. The announcement shows that the equity of Yurun Food in 44 restructuring companies has been adjusted to zero since the approval of the whole plan, that is, the equity of Yurun Food in 68 restructuring subsidiaries and the equity of affiliated subsidiaries held through 44 restructuring companies will be adjusted to zero.
Data show that Yurun Food has guaranteed 936 million yuan of debt of 44 restructuring companies. The relevant creditors of 44 restructured companies will no longer be responsible for this liability after the creditor's rights are paid in the implementation of the reorganization plan.
The debt of Yurun Food is about 618 million yuan, which will be extinguished after the relevant creditors of 44 reorganization companies realize the repayment of their creditor's rights in the implementation of the reorganization plan; Otherwise, this part of the debt will not be automatically extinguished. The total amount of about RMB 1.251 billion receivable from 44 restructuring companies and 78 restructuring companies of Yurun holdings will be converted into the equity of no more than 0.72% of the new platform.
It is understood that Yurun Group, founded in 1993, is a large private enterprise group focusing on food processing, Shenzhen Agricultural Products Group Co.Ltd(000061) logistics and commercial retail. It has two listed companies, "Yurun Food" and " Nanjing Central Emporium (Group) Stocks Co.Ltd(600280) ". In 2015, as the founder Zhu Yicai was subjected to the compulsory measures of "residential surveillance at the designated residence", Yurun Group was successively hit by financial debt default, litigation and arbitration, asset seizure and freezing, and its enterprise development was in trouble. Among them, Yurun Food had a revenue of HK $15.213 billion and a loss of HK $2.012 billion in 2020.
In order to help Yurun revitalize its assets and get rid of difficulties and rebirth, with the support of relevant departments, Yurun Group officially kicked off debt restructuring on November 16, 2020. According to the data, the restructuring plan of Yurun Group included more than 80 billion yuan of debt of 122 companies in the scope of restructuring in a step-by-step way of "cash repayment + debt repayment by installments + debt repayment by shares". The specific method is: one-time cash settlement within one year for less than 300000 yuan; RMB 300000-3 million will be paid off in cash within five years; Over 3 million yuan, the "debt to equity swap" shall be implemented at the price of 17.8 yuan per share.
The new platform undertakes the restructured original food related business and seeks to be listed in five years
The announcement shows that 44 enterprises will be integrated into the new platform Jiangsu Yurun selected food Co., Ltd., which will undertake the food and Shenzhen Agricultural Products Group Co.Ltd(000061) logistics business in the reorganization cases of 44 companies and 78 companies. Specifically, it includes feed, pig breeding, slaughtering and processing, deep processing, agricultural batch market, biotechnology, poultry industry and livestock industry. In addition to the 44 reorganized companies under the 44 company reorganization cases, the new platform also includes 78 food and Shenzhen Agricultural Products Group Co.Ltd(000061) logistics business entities and subsidiaries at all levels of relevant entities under the reorganization cases of Yurun holdings, with a total of more than 200 business entities. Jiangsu new platform will undertake the food business and Shenzhen Agricultural Products Group Co.Ltd(000061) logistics business in the reorganization cases of 44 companies and 78 companies.
After the completion of the share conversion, the selected equity structure of Yurun is as follows: the creditor of the share conversion accounts for 37.29%, Zhu Yicai accounts for 33% through Yurun holdings and Dihua industry, the strategic investor China Huarong accounts for 7%, and 22.71% of the reserved shares are used for the settlement of preferred creditor's rights and the implementation of share compensation under the performance bet.
On January 30, Yurun Food also announced that it had signed a transaction agreement with Nanjing Yurun, a subsidiary of Yurun. According to the agreement, Nanjing Yurun and its affiliates agreed to purchase deep-processing meat products from Yurun Food and its subsidiaries from January 1, 2022 to December 31, 2024.
According to the report from the new meat Federation, Yurun selection also promised to realize a net profit of no less than 5 billion yuan in 2026 and submit its listing application within 2027. After the goal of the reorganization plan is achieved, the convertible creditors will withdraw from the securitization platform or obtain higher returns from the capital market.
As far as enterprises are concerned, according to the analysis of insiders, with the end of 44 enterprise reorganization cases, the dust of Yurun reorganization case has been settled. Yurun Food can get rid of the burden and go to battle with light weight. The advantages of Yurun Food in high-quality assets in the food field can be highlighted and go to battle with light weight in the future.
It is understood that after Zhu Yicai returned to the enterprise on January 21, 2019, Yurun began to reform, and her daughter gradually moved to the front desk. Over the past two years, Yurun has launched thousands of new products. The market share of Yurun brand low-temperature meat products has regained the top position, and the slaughter of pigs has returned to the top three levels in the industry.
Another core business Shenzhen Agricultural Products Group Co.Ltd(000061) logistics has basically completed the national layout. At present, it has 18 global procurement centers for agricultural and sideline products. In recent years, the operation has been steadily improved, with an annual trading volume of more than 20 million tons and a trading volume of more than 200 billion yuan. It has jumped from the third in China to the second in the industry and has become a leading enterprise in the industry. According to reports, when the epidemic broke out in Chengdu in November 2021, Yurun undertook the task of ensuring the supply of 70% vegetables and 80% fruits in Sichuan Province. After the outbreak in Xi'an in early December 2021, Xi'an Yurun Shenzhen Agricultural Products Group Co.Ltd(000061) global procurement center undertook the task of ensuring the supply of more than 90% of fruits and non-staple food.
