Oceanwide Holdings Co.Ltd(000046) and its actual controller Lu Zhiqiang, who are mired in debt, have had a hard time recently. No, the debt collector is coming again.
On the evening of April 22, Oceanwide Holdings Co.Ltd(000046) announced that the company had received the litigation materials delivered by Wuhan intermediate people’s court from the holding subsidiary Wuhan Central Business District Co., Ltd. (hereinafter referred to as “Wuhan company”). Shanghai Zhenyan Real Estate Co., Ltd. (hereinafter referred to as “Shanghai Zhenyan”) sued Wuhan company to the court on the ground of contract dispute.
it is worth mentioning that sunhongbin, a real estate tycoon, also took action this time: rongchuang sued luzhiqiang and Oceanwide Holdings Co.Ltd(000046) to the court
Oceanwide Holdings Co.Ltd(000046) which has just been frozen a number of assets is now “exploding”. Due to contract disputes and bond trading disputes, the company was sued by Shanghai Zhenyan, Minsheng trust and rongchuang group, involving a total amount of 5.217 billion yuan.
In fact, the above litigation of more than 5.2 billion yuan is only the tip of the iceberg of the oceanwide debt problem. Since 2020, many oceanwide companies under Lu Zhiqiang’s helm have successively exposed the problem of debt default, and the amount enforced by the court in 2021 alone exceeded 6 billion yuan. On April 12 this year, 2.184 billion shares of the company held by China oceanwide, the controlling shareholder of Oceanwide Holdings Co.Ltd(000046) were subject to judicial freezing, and all shares of the company held by China oceanwide were subject to judicial freezing.
The debt storm of oceanwide also directly affects the trend of the company’s shares in the secondary market. Some time ago, the company’s shares rose with the trend by taking the opportunity of the sharp rise in the real estate sector, but the share price fell sharply in the past five trading days. The latest market value of “big white horse”, which used to have a market value of 100 billion yuan, has fallen to less than 8.5 billion yuan.
was also subject to debt recovery, involving a lawsuit amount of more than 5.2 billion
first look at the contract dispute between the company and Shanghai Zhenyan
The announcement shows that the cause of the case is that Wuhan company signed a commercial housing sales contract with Shanghai Zhenyan in 2019, which agreed that Wuhan company pre sold its assets of Building 2 of Wuhan times center to Shanghai Zhenyan, and Shanghai Zhenyan paid a total purchase price of 1.501 billion yuan. As the above assets have not been delivered so far, Shanghai Zhenyan sued Wuhan company to the court and asked Wuhan company to return the paid items and pay the interest on the occupation of funds.
For the above disputes, the core claim of Shanghai Zhenyan is to order Wuhan company to return the paid house purchase price of 1.501 billion yuan and pay the interest loss of capital occupation to Shanghai Zhenyan according to law.
At the same time, Shanghai Zhenyan also applied to the court for property preservation, which was approved by Wuhan intermediate people’s court, frozen 100% equity of Dalian Oceanwide Construction Investment Co., Ltd. held by Wuhan company (the freezing period is three years), and sealed up the land use right of Wuhan company located in Hankou airport of the former air force in Wangjiadun area of Jianghan District (the sealing period is three years).
look at the three bond disputes between Minsheng trust and Oceanwide Holdings Co.Ltd(000046)
According to the announcement, Minsheng trust purchased three bonds of “20 oceanwide 01”, “20 oceanwide 01” and “20 oceanwide 02” issued by Oceanwide Holdings Co.Ltd(000046) in 2020 respectively. Or due to the increasing debt hole of oceanwide system, Minsheng trust now requires the company to pay off the principal and interest of bonds in advance and exercise the equity pledge right on the grounds of debt disputes, and requires China oceanwide and Lu Zhiqiang to bear joint and several liability for repayment.
Further, the overall litigation request of Minsheng trust is to order Oceanwide Holdings Co.Ltd(000046) to repay the bond principal and interest of RMB 1.984 billion to Minsheng trust; Order China oceanwide and Lu Zhiqiang to bear joint and several liability for the full amount of the above litigation claims, and order Minsheng trust to give priority to the payment of the price obtained from the conversion, auction and sale of the shares corresponding to the registered capital of Wuhan company and Beijing oceanwide Xinhua Real Estate Co., Ltd. held by Oceanwide Holdings Co.Ltd(000046) within the scope of the litigation claims.
is slightly different from Minsheng trust. The Oceanwide Holdings Co.Ltd(000046) bonds purchased by rongchuang group have been in material breach of contract
In retrospect, Oceanwide Holdings Co.Ltd(000046) issued “18 Haikong 01” in September 2018, with an issuance amount of 4 billion yuan and a term of 3 years. Rongchuang group purchased “18 Haikong 01” bonds in the early stage. Since the “18 Haikong 01” bonds expired on November 10, 2021, the company failed to pay the remaining principal and interest to rongchuang group on schedule, rongchuang group sued the company, China oceanwide and Lu Zhiqiang to the Beijing Financial court.
The lawsuit claim of rongchuang group is: order Oceanwide Holdings Co.Ltd(000046) to pay the principal of 1.567 billion yuan, interest of 165 million yuan and liquidated damages to rongchuang group; Order Oceanwide Holdings Co.Ltd(000046) immediately compensate rongchuang group for the reasonable expenses actually incurred in realizing the creditor’s rights in this case, including property preservation guarantee fee, lawyer’s fee, announcement fee, etc; Order rongchuang group to have the right to discount, auction or sell 4.212 billion shares of Wuhan company held by Oceanwide Holdings Co.Ltd(000046) and the proceeds from the sale shall be paid in priority; Order China oceanwide and Lu Zhiqiang to bear joint and several liability for the above claims.
For the compensation litigation with a total amount of more than 5.2 billion yuan, Oceanwide Holdings Co.Ltd(000046) said that in view of the progress of the above litigation, it is impossible to estimate the final impact on the company at present.
shares held by controlling shareholders have been frozen
In addition to many debt disputes and defaults, all shares of the company held by China oceanwide, the controlling shareholder of Oceanwide Holdings Co.Ltd(000046) were also subject to judicial freezing.
In retrospect, Oceanwide Holdings Co.Ltd(000046) announced on the evening of April 11 that the company learned through the inquiry of China Securities Registration Shenzhen branch system that about 2.184 billion shares of the company held by China oceanwide, the controlling shareholder of the company (accounting for 68.741%) were frozen by the judiciary on April 8. So far, the controlling shareholder China oceanwide has held about 3.177 billion shares of the company (accounting for 61.15% of the total share capital of the company), which have been frozen by the judiciary.
Regarding the judicial freezing of all the shares held by the controlling shareholders, Oceanwide Holdings Co.Ltd(000046) said that the matter had no significant direct impact on the production and operation of the company, nor would it lead to the change of the controlling shareholders and actual controllers of the company. However, the company also made a risk warning. If the judicial auction transaction transfer or other forced transfer of the frozen shares occur later, the company has the risk of changing the controlling shareholder and actual controller.
In addition, some assets of Oceanwide Holdings Co.Ltd(000046) have also been frozen due to debt problems.
On April 19, Beijing Intermediate People’s court disclosed that the equity of oceanwide financial Co., Ltd. was frozen, including 100% of the assets of oceanwide financial Co., Ltd. in the second year. The company said that it was verifying the relevant parties involved in the frozen matter, striving to resolve the dispute as soon as possible and release the frozen company’s assets.
It should be pointed out that in addition to the heavy debt problem, Oceanwide Holdings Co.Ltd(000046) ‘s operating performance is also worrying. Although the company has not yet released its annual report for 2021, the performance forecast for 2021 released by Oceanwide Holdings Co.Ltd(000046) this January shows that company expects a net loss of 9-11 billion yuan in 202 7
For the substantial loss in advance of performance, the company said that it was mainly caused by many reasons. First, affected by the change of overseas macroeconomic environment and covid-19 pneumonia epidemic, the recoverable amount of overseas projects is expected to decrease in the future, and the provision for impairment is made for U.S. real estate projects and Indonesian power plants; Second, Minsheng trust, the holding subsidiary of the company, prudently accrued fair value loss and impairment provision for individual risk projects; Third, the increase of financial expenses included in profit and loss in the reporting period.
The outside world is more concerned about whether the oceanwide system with huge debt can survive this round of crisis?
