Jiangsu Hongtu High Technology Co.Ltd(600122) ushered in the dawn of “rebirth” after years of losses in its main business and billions of yuan of debt default.
On April 2 and April 5, Jiangsu Hongtu High Technology Co.Ltd(600122) successively announced that the company received the decision of Nanjing Intermediate People’s court and agreed to start the pre reorganization work with a time limit of 6 months in advance. The company can start the basic work such as declaration and review of creditor’s rights, investigation of asset status, audit and evaluation, communication with main creditors in advance, and fully negotiate with creditors and intended investors at the same time, Formulate a feasible reorganization plan as soon as possible.
Although the company has repeatedly stressed that the Nanjing Intermediate People’s court only agreed to start the pre reorganization of the company, which does not mean that the application for bankruptcy reorganization of the company is finally accepted, nor does it mean that the company officially enters the reorganization procedure. The news of the pre reorganization of the company still ignited some hopes of all parties in the market for the “rebirth” of the company.
On April 6, the first trading day after the announcement of the company’s pre reorganization news, the Jiangsu Hongtu High Technology Co.Ltd(600122) share price ushered in the limit. As of the close, the company’s shares closed at 1.91 yuan / share, up 4.95%.
listed company insolvent
creditors apply for bankruptcy reorganization
As a professional 3C chain enterprise, Hongtu high tech ( Jiangsu Hongtu High Technology Co.Ltd(600122) original stock abbreviation) once covered more than 200 cities in North China, East China, South China, southwest and central China, ranking 20th among the top 100 chain enterprises in China. In 2018, affected by the liquidity risk of the controlling shareholder sanbo group, some assets of the company were frozen, which led to the shortage of working capital and the vortex of bond default.
According to the data, the four bonds issued by the company in the inter-bank bond market from 2015 to 2018 failed to pay the principal and interest on schedule at the end of the maturity date, which constituted a material breach, and the scale of the defaulted bonds exceeded 2 billion yuan.
The reporter consulted the relevant announcements on the follow-up progress of several bills of the company not cashed on schedule issued by the lead underwriters China Citic Bank Corporation Limited(601998) , China Merchants Bank Co.Ltd(600036) at the end of March 2022. It was learned that the debt default has not been effectively solved, and the lead underwriter is still urging the issuer to formulate and promote the repayment plan as soon as possible and implement the repayment funds.
According to the data of the third quarter of 2021, by the end of September 2021, the total liabilities of the company were 9.633 billion yuan, the assets were 10.151 billion yuan, and the asset liability ratio was about 94.89%, which seriously exceeded the warning line and was almost insolvent.
Seeing that there was no hope of recovering the debt, Nanjing Xishi Electronic Technology Co., Ltd. (hereinafter referred to as “Nanjing Xishi”), a creditor troubled by debt default, found another way and applied to the court for bankruptcy reorganization of Jiangsu Hongtu High Technology Co.Ltd(600122) for bankruptcy.
On February 16 this year, Jiangsu Hongtu High Technology Co.Ltd(600122) disclosed to the public that the company received the notice of Nanjing Intermediate People’s court. Nanjing Xishi proposed bankruptcy reorganization of the company to Nanjing Intermediate People’s court because the company was unable to pay off its due debts and obviously lacked solvency. After a month and a half, the application was ruled by the court. Nanjing Intermediate People’s court agreed to start the pre reorganization of the company, and appointed Beijing Zhonglun (Nanjing) law firm and Beijing Haotian law firm as the joint manager during the pre reorganization of the company to organize and carry out the pre reorganization guidance.
The reporter called Jiangsu Hongtu High Technology Co.Ltd(600122) , and sent an interview outline to the company to inquire about the progress. The company replied, “We are carrying out follow-up work on the basis of pre reorganization and accelerating the overall work progress. At present, the reorganization is supported by most creditors of the company. With the support of the controlling shareholder sanbo group, the company will actively promote the disposal of assets, pay off debts and withdraw funds in the form of reorganization, so as to solve the debts of the company’s headquarters and most of the debts of other subordinate enterprises of the company. The introduction of strategic investment will not be ruled out when conditions are ripe in the future As a new business growth point of the company in the future, investors and new businesses should further clarify the company’s core business, further improve the company’s profitability and better repay investors. “
high probability of pre reforming to reforming
company is expected to shed its debt burden
Lawyer Wang Zhibin of Shanghai Minglun law firm said in an interview with the reporter of Securities Daily, “Pre reorganization is not a necessary procedure in the bankruptcy law. In practice, because the debt relationship of most enterprises is not clear, the court can accurately identify the reorganization value of the enterprise through the pre reorganization of the enterprise and take advantage of market-oriented means to complete the understanding of the assets and debts of the enterprise. In most cases, creditors and debtors will reach a preliminary plan in the pre reorganization stage, and the court can focus on examining the preliminary plan in subsequent judicial proceedings The legitimacy and fairness of the plan. “
The reporter noted that in recent years, many people’s courts have actively explored the practice of pre reorganization and relevant mechanism rules.
In April 2021, the Guangzhou intermediate people’s court agreed to the application of the creditors of Guangzhou Longqi to pre restructure the company. In September of the same year, the court ruled to accept the bankruptcy reorganization of the company. In December 2021, the Guangzhou intermediate people’s court ruled that the implementation of Lonkey Industrial Co.Ltd.Guangzhou(000523) reorganization plan was completed and the bankruptcy reorganization procedure of Guangzhou Longqi was terminated. The asset liability structure of the company was improved and returned to the track of sound development.
Previously, the A-share listed company Jiangyin Zhongnan Heavy Industries Co.Ltd(002445) also experienced pre reorganization and reorganization. In March 2021, the intermediate people’s Court of Wuxi City, Jiangsu Province ruled that the implementation of Jiangyin Zhongnan Heavy Industries Co.Ltd(002445) reorganization plan was completed and the company reorganization procedure was terminated. The implementation of the reorganization plan has significantly improved the company’s financial situation and had a positive impact on the company’s net assets and net profit at the end of 2020.
Jiangsu Hongtu High Technology Co.Ltd(600122) disclosed the performance forecast for 2021, which shows that the liquidity crisis has not been effectively alleviated. At the same time, the 3C retail sector, one of the main businesses, continues to reduce its scale. In addition to the continued profitability of the industrial manufacturing business sector, the art auction business sector has gradually stabilized and rebounded, and the operating performance of other business sectors has been greatly affected. The company expects the net profit loss attributable to the shareholders of the listed company to be RMB 287 million to RMB 388 million in 2021. Previously, the company had suffered losses for three consecutive fiscal years, with losses of more than 2 billion yuan.
“If the company can successfully complete the pre reorganization and enter the reorganization stage, the company still has the hope to get rid of the debt burden. The success of reorganization actually means that creditors give up part of their creditor’s rights in exchange for the company’s’ rebirth ‘. Of course, it still depends on whether the specific reorganization plan is reasonable. Creditors can vote against unreasonable reorganization plans.” Wang Zhibin told reporters.
After the pre reorganization, this newspaper will follow up whether the creditor’s application to the court for bankruptcy reorganization of the company can be accepted smoothly.
