Due to dissatisfaction with the China Fortune Land Development Co.Ltd(600340) debt restructuring plan, Zhongrong trust took further action after refusing to join the debt Committee.
On February 10, the 21st Century Business Herald reporter learned that Zhongrong trust had hired a lawyer team that day, saying that “it will initiate a lawsuit as soon as possible and resolutely protect the rights and interests of the client.”
illegal payment of pledged accounts receivable?
“The company found that 17.649 billion yuan of accounts receivable pledged by China Fortune Land Development Co.Ltd(600340) were paid in violation of regulations, which has seriously damaged the interests of investors.” Zhongrong Trust said that through the tracking analysis of the financial statements of China Fortune Land Development Co.Ltd(600340) and the pledgor, it was found that the amount of accounts receivable in Hebei Province decreased, but the corresponding funds were not received in the regulatory account, and there was a similar situation in the accounts receivable of a city in the south.
For the failure to collect the accounts receivable to the designated account. Zhongrong Trust said that after discovering the situation, Zhongrong trust sent letters to the local government and China Fortune Land Development Co.Ltd(600340) for verification for many times. As of February 9, 2022, it had not received any reply.
It is understood that the total principal amount of creditor’s rights of the four collective trust plans managed by Zhongrong trust is 5.984 billion yuan. The total pledge China Fortune Land Development Co.Ltd(600340) is 17.649 billion yuan of accounts receivable from the local government of each park due to the construction of the park, and the overall pledge rate is less than 35%.
In addition, Zhongrong trust disclosed that before the issuance of financing funds, China Fortune Land Development Co.Ltd(600340) issued a notice letter to the local government of each park, informing each park government to pledge the accounts receivable generated by each park government due to the PPP project to Zhongrong trust financing, and each park government also issued a commitment letter to Zhongrong trust, Knowing that after the pledge, the investor represented by Zhongrong trust has the priority to be repaid for the accounts receivable, and promised that “all subsequent accounts receivable will be paid to the designated regulatory account, and the collection account will not be changed without the consent of Zhongrong trust”.
For the above situation reflected by Zhongrong trust, on February 10, the reporter repeatedly dialed China Fortune Land Development Co.Ltd(600340) letter approval telephone during working hours, but failed to connect.
why are you dissatisfied with the debt restructuring plan?
It is understood that in October 2021, China Fortune Land Development Co.Ltd(600340) provided Zhongrong trust with a repayment plan of “five-year clean trust loan with low interest”. However, after Zhongrong trust held a beneficiary meeting to coordinate investors to agree to the plan, China Fortune Land Development Co.Ltd(600340) extended the repayment period to eight years.
Therefore, on February 6, 2022, Zhongrong trust issued an interim management report, saying that the debt restructuring conditions provided by China Fortune Land Development Co.Ltd(600340) violated the principles of the debt restructuring plan and debt resolution, and there were still great risks in the debt restructuring conditions. In order to protect the interests of the trustor, as the trustee, Zhongrong trust is temporarily unable to join the China Fortune Land Development Co.Ltd(600340) debt Committee on behalf of the trust plan, or accept the current debt restructuring plan of China Fortune Land Development Co.Ltd(600340) and sign the debt restructuring agreement on behalf of the trust plan.
“As the trustee, Zhongrong trust will also take resolute action on behalf of the trust plan for the breach of commitments of accounts receivable if there is no change in the follow-up.” Zhongrong trust mentioned in the above interim report.
On February 8, China Fortune Land Development Co.Ltd(600340) responded that the company has conducted several rounds of negotiations with Zhongrong trust and is further communicating the specific contents of the agreement; The debt restructuring work is progressing steadily. The company will continue to adhere to the basic principle of “not evading or abolishing debt”, strictly implement the debt restructuring plan, promote the signing of debt restructuring agreement, effectively protect the legitimate rights and interests of creditors and strive to resolve China Fortune Land Development Co.Ltd(600340) debt risks as soon as possible.
On February 9, China Fortune Land Development Co.Ltd(600340) disclosed the announcement on the progress of debt restructuring. Up to now, the financial debt in its debt restructuring plan has signed a contract to realize the debt restructuring, with a cumulative amount of 42.918 billion yuan, and the corresponding amount of debt interest reduction and penalty interest exemption is 2.869 billion yuan.
According to the disclosure of China Fortune Land Development Co.Ltd(600340) on October 8, 2021, its existing financial debts totaled 219.2 billion yuan. As of January 20, 2022, China Fortune Land Development Co.Ltd(600340) accumulated debts that failed to be repaid on schedule totaled 93.556 billion yuan (excluding interest), and the repayment of all financial debts will be implemented under the unified arrangement of the debt restructuring plan.
