Jinli formally entered bankruptcy proceedings and the preliminary reorganization plan came out

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 Jinli formally entered bankruptcy proceedings and the preliminary reorganization plan came out


According to the information from Shenzhen Intermediate Peoples Court of Guangdong Province, the court has decided on Dec. 10 to accept the bankruptcy liquidation application filed by Shenzhen Branch of Guangdong Huaxing Bank Co., Ltd. to Shenzhen Jinli Communication Equipment Co., Ltd. According to the Shenzhen Intermediate Court of Justice, the creditors rights involved in the case have expired and have not been repaid so far, sufficiently proving that Jinli Company obviously lacks the ability to repay. The application of the applicant, Huaxing Bank Shenzhen Branch, conforms to the law, so the above ruling is made.

The news was deemed to be the judgment of Jinlis bankruptcy, but an insider from Jinli told the First Financial Journalist that the court accepted the bankruptcy liquidation application, not ruling on bankruptcy liquidation, but is still the direction of bankruptcy reorganization. In other words, the court accepts bankruptcy liquidation as well as bankruptcy reorganization.

According to an exclusive proposal of Jinli Groups framework reorganization plan provided by Shenzhen Fuhai Yintao Asset Management Co., Ltd., the consultant believes that the most beneficial way for creditors at present is to reorganize Jinli rather than liquidate it.

According to our preliminary analysis, the value of Jinli after restructuring will be several times higher than that of the current liquidation. The main reasons are as follows: firstly, Jinlis existing equity investment may have a large appreciation space in recent years, such as the shares of Weizhong Bank; secondly, it is possible for Jinli to maintain a certain scale of operation by relying on existing resources (including brand, marketing network, technical team and cash flow available to itself), although it is impossible to achieve the original scale in a short time, but the restructuring price it has. Value should not be neglected. The consultants said that debt restructuring could only be based on self-help, not excluding the introduction of white warriors, but at this stage the possibility of introducing white warriors is almost zero. The managements efforts over the past year have proved this judgment.

Official entry into bankruptcy proceedings

The first financial reporter saw the original ruling in the civil ruling of the Shenzhen Intermediate Peoples Court of Guangdong Province on Dec. 10 as follows: to accept the bankruptcy liquidation application filed by the applicants Shenzhen Branch of Guangdong Huaxing Bank Co., Ltd. to the applicants Shenzhen Jinli Communication Equipment Co., Ltd.

However, accepting bankruptcy liquidation applications is not ruled to be formally bankrupt.

The Shenzhen Intermediate Court said, The applicant, Huaxing Bank Shenzhen Branch, enjoys legal and effective creditors rights to the applicants Jinli Company, which is overdue and can not be repaid. As a creditor of Jinli Company, Shenzhen Branch of Huaxing Bank may apply to our court for bankruptcy liquidation of Jinli Company according to law. The fact that the creditors rights involved in the case have expired and have not been repaid so far is sufficient to prove that Jinli Company obviously lacks the ability to repay.

Bankruptcy liquidation is not the desired outcome of Jinli Group creditors. In the first article of the Agreement on Concerted Action of Creditors of Jinli Group, it is mentioned that Jinli Group has been seriously insolvent and has lost its solvency. Once Jinli Group goes bankrupt and liquidates, the interests of creditors will suffer serious losses.

On December 16, some Jinli suppliers issued a petition for Jinli suppliers to survive, which mentioned that Jinli has started to go bankruptcy restructuring at this stage, which gives suppliers hope. However, because our suppliers have been suspended for nearly half a year to varying degrees, if we wait for Jinli bankruptcy reorganization to complete before payment, our suppliers will be bankrupt already. Therefore, we ask the government to coordinate, let Jinli dispose of some assets to repay, let our suppliers live, let us thousands of workers live.

At the same time, the supplier proposed that at present there are some materials and equipment with cash value in Jinli Industrial Park, but nobody manages them because Jinli is in a standstill. If it is not disposed of quickly, the materials and equipment will eventually become scrap copper and scrap iron. We hope that we can get help to dispose of part of Jinlis assets as soon as possible, pay the upstream suppliers and pay the workers.

Debt restructuring can only be based on self-help

According to the reporters understanding, at present, Shenzhen Fuhai Yintao Asset Management Co., Ltd. (hereinafter referred to as Fuhai Yintao) has formally signed the Reorganization Consultant Agreement with Shenzhen Jinli Communication Equipment Co., Ltd.

According to Tian Eye Survey, Fuhai Yintao has registered capital of 30 million yuan, and its main business includes equity investment and enterprise restructuring consultants. Wu Jiesi was appointed to Hong Kong by the Guangdong Provincial Government in 1999. He was responsible for the reorganization of the Guangdong-Hainan Group, which was up to $3.585 billion at that time. He became famous and played a key role in the reorganization of JiaZhaoye.

In an exclusive material obtained by the reporter, we can see that the above-mentioned restructuring consultant has initially worked out a restructuring plan for Jinli Group, and said that the basis of this plan is that all shareholders of Jinli Group (including those who have no responsibility for the status quo of Jinli Group) give up all rights and interests of the company. Therefore, it is essentially a self-rescue plan for Jinli creditors.

Fuhai Yintao believes that entering the bankruptcy reorganization procedure as soon as possible is the only way for all Jinli creditors to reduce losses and improve the recovery rate of creditors rights. At present, Jinli Group has been seriously insolvent and has lost its solvency. Once Jinli Group goes bankrupt and liquidates, the interests of creditors will suffer serious losses.

In this plan, Fuhai Yintao put forward several opinions: First, enter the judicial process as soon as possible, and carry out bankruptcy reorganization of Jinli Group. The second is to set up an asset management company to control the assets that can be realized by the original Jinli Group (including but not limited to the shares of Weizhong Bank, Nanyue Bank, Dongguan Industrial Park and land use rights, Jinli Building and land use rights, sporadic property, other foreign equity investments and accounts receivable). The asset management company is owned by all creditors. The time and manner of liquidation of assets under the control of the asset management company shall be determined by the creditors through consultation, and the secured claims with property shall be paid in priority within the scope of cash conversion of the secured property. Third, the original shareholders and management team, except the responsible persons, restored a certain scale of operation with existing resources (operation company) under the supervision of accountants or administrators appointed by the court. The main business includes mobile phone brand authorization business and mobile Internet business. The equity of the operating company is owned by the creditors. Whether to allocate a certain share to the management and the original group shareholders other than those responsible shall be determined by the creditors. Fourthly, after entering the reorganization process or after the reorganization is successful, whether to introduce strategic investors and when and under what conditions, the creditors will decide through consultation. Fifth, in order to ensure the smooth progress of reorganization, the following parts of the ordinary creditors rights (including 500,000 yuan) should be paid first in principle.

Fuhai Yintao emphasized that speeding up the bankruptcy reorganization procedure is the only way to maximize the interests of creditors. Valuable assets of an enterprise are in the state of mortgage, without going into bankruptcy reorganization proceedings, creditors who are not mortgaged on the assets can not improve the recovery rate; except for individual bank accounts, the accounts are sealed up by the court. This situation can only be improved after entering the bankruptcy reorganization procedure, Jinli can resume operation, and all creditors have the opportunity to enjoy the benefits of asset appreciation.

In addition, in the restructuring framework given by Fuhai Yintao, it is mentioned that after restructuring, Jinli set up an asset management company and operation company: the asset management company is 100% owned by creditors and holds the high-quality non-core assets of the original Jinli Group, including Weizhong Banks equity, Nanyue Banks equity, Qianhai Jinli Building and land use rights, Dongguan Industrial Parks workshop and land use rights, sporadic. Property, other foreign equity investments and accounts receivable; Operating companies are mainly engaged in mobile phone brand authorization and mobile Internet business, and their equity is owned by creditors. Whether to allocate a certain equity to management and original Jinli Group shareholders other than those responsible is determined by creditors (according to market practice, to give a certain share to management is to retain the companys technical team and maintain the normal operation of operating companies). Except for the responsible person, the majority of the shareholders of Yuanjin Group are mobile phone dealers. It is beneficial for the operation of the company to give a certain proportion of the shares of Yuanjin Group shareholders except the responsible person. Source of this article: First Financial Network Responsible Editor: Ji Guojie_NBJ11143

In addition, in the restructuring framework given by Fuhai Yintao, it is mentioned that after restructuring, Jinli set up an asset management company and operation company: the asset management company is 100% owned by creditors and holds the high-quality non-core assets of the original Jinli Group, including Weizhong Banks equity, Nanyue Banks equity, Qianhai Jinli Building and land use rights, Dongguan Industrial Parks workshop and land use rights, sporadic. Property, other foreign equity investments and accounts receivable; Operating companies are mainly engaged in mobile phone brand authorization and mobile Internet business, and their equity is owned by creditors. Whether to allocate a certain equity to management and original Jinli Group shareholders other than those responsible is determined by creditors (according to market practice, to give a certain share to management is to retain the companys technical team and maintain the normal operation of operating companies). Except for the responsible person, the majority of the shareholders of Yuanjin Group are mobile phone dealers. It is beneficial for the operation of the company to give a certain proportion of the shares of Yuanjin Group shareholders except the responsible person.