On April 12, Chongqing Gas Group Corporation Ltd(600917) ( Chongqing Gas Group Corporation Ltd(600917) , SH; yesterday’s closing price was 7.21 yuan) announced that the company received the notification letter from the controlling shareholder Chongqing Energy Investment Group Co., Ltd. (hereinafter referred to as Chongqing energy investment) on April 11. The notification letter said that Chongqing energy investment applied to Chongqing fifth intermediate people’s court for restructuring and submitted the application for pre restructuring in order to properly resolve the debt risk. At present, Chongqing energy investment has received the notice of the members of the collegial panel of the court.
The reporter of the daily economic news noted that Chongqing energy investment is the largest state-owned energy enterprise in Chongqing, with total assets of more than 100 billion yuan at the end of 2020. From the public information, Chongqing energy investment involves many lawsuits; In the first quarter of last year, Chongqing energy investment was exposed to the news of debt default; Since February last year, part of the equity of Chongqing Gas Group Corporation Ltd(600917) held by the company has been frozen by the judiciary.
Chongqing energy investment applying for reorganization
Chongqing energy investment is a large state-owned enterprise in Chongqing. Qixinbao shows that the company was established in 1989 with a registered capital of 10 billion yuan and a wholly-owned shareholder of Chongqing SASAC.
According to the official website of Chongqing energy investment, the company was integrated by the former Chongqing coal (Group) Co., Ltd. Chongqing Gas Group Corporation Ltd(600917) group and Chongqing construction investment company in 2007. It is the largest state-owned energy enterprise integrating investment, development, construction, operation and service in Chongqing.
Chongqing Gas Group Corporation Ltd(600917) announcement once revealed that the total assets and net assets of Chongqing energy investment at the end of 2020 were 100646 billion yuan and 27.605 billion yuan respectively; In 2020, Chongqing energy investment realized operating revenue and net profit of 41.449 billion yuan and – 671 million yuan respectively.
Pre reorganization mechanism, that is, before the court formally accepts the reorganization application, pre select auxiliary institutions to enter the enterprise to clear up creditor’s rights and debts, assist in negotiations and assist the enterprise to promote reorganization Chongqing Gas Group Corporation Ltd(600917) said that Chongqing energy investment is actively negotiating with creditors and other parties to form a reorganization plan. Whether the pre reorganization is filed and registered by the court and whether the reorganization is accepted by the court is still uncertain.
Up to now, Chongqing energy investment holds 645 million Chongqing Gas Group Corporation Ltd(600917) shares, accounting for 41.07% of the total shares of listed companies. Estimated by Chongqing Gas Group Corporation Ltd(600917) as of the closing price on April 11 (7.08 yuan / share), the total market value of Chongqing energy investment is about 4.567 billion yuan. Due to litigation disputes, 713823 million shares of Chongqing Gas Group Corporation Ltd(600917) equity held by Chongqing energy investment were frozen, accounting for 110598% of its shareholding.
Chongqing Gas Group Corporation Ltd(600917) believes that the company has independent and complete business and independent operation ability, and is independent of the controlling shareholders and their related parties in terms of business, personnel, assets, institutions, finance, etc. “The reorganization application of the controlling shareholder will not have an impact on the daily production and operation of the company”.
there was a debt default last year
Qixinbao shows that Chongqing energy investment involves a large number of lawsuits due to financial leasing contract disputes and financial loan contract disputes.
In early March last year, Chongqing energy investment was exposed by the media that there was a debt default of hundreds of millions of yuan. In mid March last year, Chongqing energy investment publicly said that the company was undergoing industrial structural transformation and adjustment. Due to short-term liquidity problems, the onshore letters of credit and bank bills of the company and its related subsidiaries had defaulted. The company is still assessing whether relevant events will trigger any cross default under the bonds, and is actively seeking appropriate debt solutions to timely fulfill its obligations under the bonds.
In April last year, caixin.com reported that Chongqing energy investment has established a creditor Committee. There are seven chairman banks of the creditor Committee, including Agricultural Bank of China, China Development Bank, China Construction Bank, ICBC, Chongqing rural commercial bank, Industrial Bank Co.Ltd(601166) , Bank Of Chongqing Co.Ltd(601963) , which is the largest seven creditor banks of the company. By the end of 2020, Chongqing energy investment’s interest bearing financial liabilities totaled more than 50 billion yuan.
In November last year, Chongqing energy investment said that it had received a letter from the trustee of the relevant bonds: the event of default under Clause 9 of the bonds had occurred, and the event of default continued on the date of the acceleration notice. All bonds were announced to be immediately due and paid according to the principal amount together with any accrued but unpaid interest. “The company has reached an agreement with the trustee and the relevant bondholders to redeem all the bonds and any accrued but unpaid interest in full on or around November 17, 2021 in accordance with the conditions.” The company said at the time.
The reporter of the daily economic news noted that the official wechat of Chongqing energy investment revealed that song Kui, Secretary of the Party committee and chairman of Chongqing energy investment, presided over a special meeting of the group on the afternoon of April 11 and made research and deployment on promoting the pre reorganization of the company. The meeting informed the company’s pre reorganization background, relevant preparations and pre reorganization time nodes, and made arrangements for the next step of pre reorganization.
“The implementation of pre reorganization + reorganization is the preferred path for the transformation and development of the group. We should be confident and calm, earnestly shoulder the main responsibility of the enterprise, and promote pre reorganization and risk resolution in accordance with laws and regulations. We should do a good job in current work safety, transformation and development and epidemic prevention and control, so as to create a safe and stable environment for the smooth promotion of pre reorganization.” Chongqing energy investment said at the above meeting.
In the morning of April 12, the reporter called the contact number published on the official website of Chongqing energy investment. The other party said that the number was the phone of the safety duty room, and he didn’t know about the relevant situation; The reporter then dialed the administrative office telephone provided by him, but no one answered.
