China Fortune Land Development Co.Ltd(600340) (600340. SH) debt restructuring has made waves again.
The reporter learned from the investors a few days ago that Zhongrong trust issued an interim management report, saying that because 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 client, 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.
In response to this, China Fortune Land Development Co.Ltd(600340) responded to the reporter of the daily economic news, saying that all the work of China Fortune Land Development Co.Ltd(600340) debt restructuring is steadily advancing. 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. At present, the company has conducted several rounds of negotiations with Zhongrong trust and is communicating the specific contents of the agreement in further detail.
According to cnr.com, 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. Zhongrong trust has recently hired a lawyer team, saying that ” will initiate a lawsuit as soon as possible and resolutely protect the rights and interests of the client “.
According to interface news, in order to enhance confidence, Zhongrong Trust said to investors, “in terms of Internet buzzwords, we will have a ‘phased tear off’ with China Fortune Land Development Co.Ltd(600340) , which may also be ugly , but it is all to let it continue to solve along the previous debt restructuring plan.” It is not difficult to predict that the debt restructuring process of China Fortune Land Development Co.Ltd(600340) will face many storms.
China Fortune Land Development Co.Ltd(600340) request to extend the repayment period by 3 years
Recently, the reporter learned from investors that the interim management report issued by Zhongrong Trust said 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 are still great risks in the current debt restructuring conditions. In order to protect the interests of the trustor, Zhongrong trust, as the trustee, 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.
In the report, Zhongrong Trust said that since the resolution of the general meeting of beneficiaries was formed, the trustee has continuously negotiated with China Fortune Land Development Co.Ltd(600340) to implement the relevant matters of the resolution of the general meeting of beneficiaries. In order to obtain more favorable conditions for debt restructuring, relevant parties have conducted several rounds of communication, but so far they have failed to reach an agreement with China Fortune Land Development Co.Ltd(600340) on the conditions for debt restructuring. During the negotiation, the trustee found that China Fortune Land Development Co.Ltd(600340) not only failed to protect the interests of creditors to the greatest extent based on the debt restructuring plan as promised, but also failed to implement the basic conditions promised in the early debt restructuring plan.
Zhongrong Trust said that the contents that cannot be implemented include at least three aspects: first, in terms of the extension time , China Fortune Land Development Co.Ltd(600340) requires the trust plan to agree to an unconditional extension of three years on the basis of the term adjustment plan set in the debt restructuring plan, that is, if the trust plan still joins the debt Committee, the debt repayment period may be 8 years .
Secondly, in terms of installment repayment arrangement, China Fortune Land Development Co.Ltd(600340) has not formulated a specific extension plan for the participation of the trust plan in debt restructuring, and the annual repayment during the extension period cannot be determined . Without explicit agreement, all debts may not be paid until the extension period of 5 or even 8 years expires. If the full repayment is delayed, according to the current credit situation of China Fortune Land Development Co.Ltd(600340) , the possible risks of the trust plan cannot be controlled.
Third, for the collection of pledged accounts receivable , the collection of pledged accounts receivable should be used to repay the trust plan debt guaranteed by it first, and the source of debt repayment funds for debt restructuring is mainly government accounts receivable , but in the process of debt restructuring negotiation, China Fortune Land Development Co.Ltd(600340) so far, no formal communication has been arranged between the trustee and the payment government of pledged accounts receivable .
It is understood that four trust products under Zhongrong trust are involved in the China Fortune Land Development Co.Ltd(600340) debt restructuring plan, including “Zhongrong Rongyu No. 100 collective fund trust plan”, “Zhongrong Jida No. 11 collective fund trust plan”, “Zhongrong Xiangrong No. 287 collective fund trust plan” and “Zhongrong Xiangrong No. 223 collective fund trust plan”, The total capital scale of the four products is 7.1 billion yuan.
concerted action is required after joining the debt Committee
Investors of “Zhongrong Xiangrong No. 287 collective fund trust plan” told reporters that Zhongrong trust held the second beneficiary meeting on November 16, 2021, and voted that the trustee joined the debt Committee on behalf of the trust plan, agreed to the debt restructuring plan and signed the debt restructuring agreement.
According to the relevant matters of the bill of the beneficiary’s National People’s Congress, if the trust plan joins the China Fortune Land Development Co.Ltd(600340) debt Committee, the members of the debt committee should act in concert. If the members of the debt Committee fail to comply with the resolutions made by the debt Committee in accordance with the agreed rules of procedure, it will constitute a breach of contract. If the defaulting party obtains benefits due to the breach, the presidium of the debt Committee has the right to request the defaulting party to return the benefits on behalf of other members of the debt Committee, and redistribute the benefits within the scope of the debt Committee.
Relevant matters of the proposal also mentioned that if the trust plan joins the China Fortune Land Development Co.Ltd(600340) debt Committee, once the debt restructuring plan is voted by the China Fortune Land Development Co.Ltd(600340) debt Committee, the trust plan shall comply with all resolutions voted and adopted by the China Fortune Land Development Co.Ltd(600340) debt Committee and the presidium of the debt Committee, including but not limited to the debt restructuring plan voted and adopted Sign the debt restructuring agreement and relevant documents.
China Fortune Land Development Co.Ltd(600340) since the debt crisis, the China Fortune Land Development Co.Ltd(600340) debt Committee was established to inform all creditors of financial institutions of the debt restructuring plan. According to the debt restructuring plan, the restructuring plan to be applied to the creditor’s rights held by the trust plan is “exhibition”. The main contents of the “exhibition” include: the extension of the debt principal to the expiration of 5 years after the signing date of the debt restructuring agreement, and the extension can be continued through negotiation according to the actual situation after the expiration; Debts guaranteed by accounts receivable pledge shall be repaid in annual installments and proportion.
China Fortune Land Development Co.Ltd(600340) response: detailed communication is being made
Recently, The relevant person in charge of China Fortune Land Development Co.Ltd(600340) told the reporter of the daily economic news that ” China Fortune Land Development Co.Ltd(600340) debt restructuring 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 risk as soon as possible.
At present, the company has conducted several rounds of negotiations with Zhongrong trust and is further communicating the specific contents of the agreement. “
In addition, a person close to China Fortune Land Development Co.Ltd(600340) told reporters: “the progress of China Fortune Land Development Co.Ltd(600340) debt restructuring plan will be publicized every month. At present, the progress effect is OK. In the near future, we can wait for the progress in February. The situation of Zhongrong trust should be an example. The debt restructuring agreement is legally binding, and I don’t believe China Fortune Land Development Co.Ltd(600340) dare to violate relevant principles.”
“As far as I know, there are no irreconcilable fundamental differences between the two sides, and the two sides have not stopped communicating. The negotiation of debt restructuring must be complex and difficult, but the general direction is good.”
On January 19, 2022, China Fortune Land Development Co.Ltd(600340) issued an announcement, “As of January 19, 2022, the debt restructuring agreement signed by the company and its subsidiaries with relevant creditors involved the company’s and its subsidiaries’ debt totaling 8.857 billion yuan , and the debt interest reduction and penalty interest exemption totaled 547 million yuan, accounting for 14.91% of the company’s latest audited net profit attributable to the company’s shareholders of 3.665 billion yuan.”
At the same time, China Fortune Land Development Co.Ltd(600340) announced that: ” the company’s existing financial debts totaled 219.2 billion yuan, and the accumulated amount of debts that have not been repaid on schedule so far totaled 93.556 billion yuan (excluding interest) .”
China Fortune Land Development Co.Ltd(600340) also said in the announcement: “based on the basic premise of ‘not evading or abolishing debt’, we should steadily resolve the debt risk of China Fortune Land Development Co.Ltd(600340) and safeguard the legitimate rights and interests of creditors in accordance with the principles of marketization, legalization, fairness and justice and classified policy implementation.”
From the episode of Zhongrong trust, China Fortune Land Development Co.Ltd(600340) as it said: “at present, the debt restructuring plan is still in the communication stage. The follow-up company will actively follow up the feedback of creditors on the debt restructuring plan under the guidance and support of the local government, maintain continuous communication with creditors and feed back relevant information to all parties in time.”
