Although Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) ( Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) . SH) has a huge backlog of arrears, most disputes have not been resolved for a long time. However, the announcement disclosed on March 10 shows that the court will take compulsory measures against a case of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) .
The financial Associated Press reporter noted that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) after the court’s repayment order came into effect in August 2021, although there was sufficient repayment funds in the account, it was still in arrears. Therefore, the debtor Hengfeng bank Wuxi Branch applied to the court for enforcement, and the court ruled to freeze and deduct the company’s bank deposits of about 101 million yuan.
For the company’s capital situation and subsequent impact, the reporter of the financial Associated Press contacted Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , but did not receive a response. Some market analysts told the financial associated press that under the background of high raw material prices of phosphate rock, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) large amount of funds are frozen, and procurement, production and other aspects are bound to be restricted, which will undoubtedly aggravate the operation risk of the company.
Since this year, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) share price has fluctuated greatly, and has become a “demon stock” to the letter. In particular, from January 28 to March 4, 2022, the limit rose for 12 trading days, but then fell for 2 consecutive days. As of the closing on March 10, the company’s share price was 9.63 yuan / share.
half a year ago, the judgment is still in arrears
Previously, in January 2020, Chengxing Co., Ltd. borrowed 20 million yuan from Wuxi Branch of Hengfeng bank for the purchase of yellow phosphorus. The loan term was one year, and then only 58000 yuan of principal was returned; In March 2020, Chengxing Co., Ltd. borrowed 80 million yuan from Wuxi Branch of Hengfeng bank for the purchase of yellow phosphorus. The loan period was one year, and then it was not returned. Therefore, Wuxi Branch of Hengfeng bank sued the court and asked Chengxing shares to return all the above-mentioned loan principal and interest.
On August 24, 2021, the intermediate people’s Court of Wuxi City, Jiangsu Province made a judgment of first instance that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) should return the loan and penalty interest to Wuxi Branch of Hengfeng bank within 10 days from the date of legal effect of this judgment, while Chengxing group shall bear joint and several liability for the debt of Chengxing shares within the maximum balance of RMB 110 million.
Surprisingly, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is still in arrears after the judgment takes effect. According to the announcement on March 10, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) received the notice of execution, the ruling of execution, the order of reporting property and the notice of payment from the parties from the people’s Court of Jiangyin City, Jiangsu Province. The court took compulsory enforcement measures against Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) to freeze and deduct about 101 million yuan of the bank deposit of Chengxing shares and the corresponding interest, or to seal up, detain, detain Withdraw, freeze, auction, sell off and sell off the property with its corresponding value.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) said that the above major litigation (Arbitration) cases will have a certain negative impact on the company’s profits. The company has accrued all estimated liabilities. The amount of impact on the company’s current or future profits will be subject to the final accounting treatment after the annual audit confirmation of the audit institution. A total of 32 bank accounts of the company and its subsidiaries were frozen, and the frozen amount was 104152 million yuan.
In the forecast of 2021 annual report, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) did not disclose the funds. However, the third quarterly report of 2021 shows that the balance of cash and cash equivalents of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is 276 million yuan, which means that nearly half of the company’s cash will be frozen this time.
It is worth noting that there are not only the above cases, up to now, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has 16 major litigation cases, and the amount of major litigation (Arbitration) is 2.211 billion yuan; In addition, the amount of other lawsuits (Arbitration) of the company is 129 million yuan, the amount of lawsuits sued by investors is 642693 million yuan, and the amount of litigation fees urged by the people’s court is 2.667 million yuan, so the cumulative amount involved in the case of the company is 2.405 billion yuan.
auction equity is it out of the shell
The financial Associated Press reporter also noted that Chengxing group, the controlling shareholder of the company, is in the process of reorganization, and its equity of the listed company was auctioned by the judiciary under the application of the related party chengdie Co., Ltd. Once the judicial auction is successful, Chengxing group will be eliminated from Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) but it can also get rid of the huge debt problem. At present, there are no bids from bidders in the two judicial auctions, and the shares of the company held by Chengxing group are auctioned off.
Relevant announcements show that the starting price of the above shares is 807 million yuan, and the pricing basis is the 90 day moving average price, i.e. 1.153 billion yuan. However, it should be noted that bidders for the above shares must promise to solve the capital problem of Chengxing group and its related parties occupying 62% of the company’s total capital principal and interest of 2.223 billion yuan. This means that if you want to take over Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , you should not only spend at least 807 million yuan on the auction platform to win the above shares, but also spend up to 1.378 billion yuan to solve the capital problem.
At the end of 2021, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) received the inquiry letter on matters related to the judicial auction of shares held by Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) shareholders. The Shanghai Stock Exchange asked Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) to specify the relationship between Chengxing group and chengdish Co., Ltd., whether there was collusion to deliberately apply for judicial enforcement, and whether there was collusion to evade the reduction provisions. The reply to the inquiry letter was postponed for 9 times. On March 4, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) replied to some of the questions.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) replied that chengdie Co., Ltd. was jointly established by Chengxing group and dieli Co., Ltd., a trading partner in the Japanese market, but dieli Co., Ltd. is responsible for all operation and management practices, and Chengxing group does not participate. Chengxing group issued a written confirmation that because Chengxing group failed to perform the effective judgment, chengdie Co., Ltd. applied to the court for execution in order to realize its own creditor’s rights, which was its independent and independent act.
However, the manager of Chengxing group said that the manager has taken over Chengxing group since February 11, 2022. At present, he does not know the specific situation and implementation of the cooperation. Moreover, chengdie Co., Ltd. failed to accept the interview, and the company failed to obtain the confirmation opinion of chengdie Co., Ltd. on its relationship with Chengxing group and whether there is collusion and deliberate application for judicial enforcement.
For the subsequent treatment of this part of equity auction, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) responded: “after the people’s court accepts the bankruptcy application, the preservation measures related to the debtor’s property shall be lifted and the execution procedure shall be suspended. The manager has taken over Chengxing group since February 11, 2022, and the subsequent manager will send a notice of suspension of execution to Jiangyin court. Up to now, the notice of suspension of execution from Jiangyin court has not been received.”
