Jin Li denied ruling on bankruptcy and liquidation, and Shenzhen Intermediate Court ruled on accepting applications.

 Jin Li denied ruling on bankruptcy and liquidation, and Shenzhen Intermediate Court ruled on accepting applications.

The court officially ruled that Jinli was bankrupt, according to news circulated online on the evening of the 17th. Jinli responded to the first financial statement: the court accepted the bankruptcy liquidation application, not ruling on bankruptcy liquidation, but is still the direction of bankruptcy reorganization.

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.

According to a proposal of the framework reorganization plan of Jinli Group received by the First Financial Journalist, Shenzhen Fuhai Yintao Asset Management Co., Ltd. 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. The consultant suggested that after restructuring, Jinli should 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 Yuanjin 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 investment and response. 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 share to the management and the shareholders of Yuanjinli Group, except the responsible person, is determined by creditors (giving a certain share to the management according to market practice is the necessary condition for retaining the companys technical team and maintaining the normal operation of the operating company except 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 shares to the shareholders of Yuanjin Group besides the responsible persons.

Source: First Financial Responsibility Editor: Qiao Junjing_NBJ11279