The second auction of 10 billion assets of the former king of potash fertilizer: no bidding after discount

category:Finance
 The second auction of 10 billion assets of the former king of potash fertilizer: no bidding after discount


According to taobao.coms judicial auction network platform, as of 9:00 on December 3, the three auctions of 88.3% equity and 34.95 billion yuan debt receivable of Qinghai Salt Lake magnesium Co., Ltd., 97.748% equity and 6.023 billion yuan debt receivable of Qinghai Salt Lake Haina Chemical Co., Ltd. and the asset package of Salt Lake petrochemical branch had all ended. Although the starting price of the second auction is more than the asset valuation, the three assets of St salt lake are still auctioned because no one participates in the auction.

According to the provisions of the property management and price change plan, 70% of the assessed value of the disposed assets shall be the starting price for the first auction. If the previous auction fails to be completed, the price reduction rate for the next auction shall not exceed 30%. The assessed value of the three st Salt Lake assets is nearly 25.4 billion yuan, and the secondary starting price is about 12.4 billion yuan.

The third auction is about to begin

The surging news reporter noted that st Salt Lake will start the third auction of the above-mentioned assets at 9:00 on December 11, with a starting price of another 70% off. At present, no one has signed up.

St salt lake was founded in 1958 and listed on Shenzhen Stock Exchange in 1997. The first major shareholder of the company is Qinghai provincial state-owned assets investment management company. The actual controller is Qinghai provincial state owned assets supervision and Administration Commission. The companys main business includes production and sales of potassium chloride, comprehensive utilization of salt lake resources, etc. Among them, the designed annual capacity of potash fertilizer plate is 5 million tons, which is the largest potash fertilizer production enterprise in China, and it is known as the king of potash fertilizer in the industry.

However, St Salt Lake suffered the first loss since its establishment in 2017, with a total loss of 7.655 billion yuan in 2017 and 2018, due to continuous huge losses in projects of magnesium integration, PVC integration, comprehensive utilization phase I and phase II. On April 30, 2019, the company was given delisting risk warning and changed from Salt Lake stock to St Salt Lake. In case of another loss this year, the companys shares will be suspended from listing after the issuance of 2019 annual report.

St Salt Lakes third quarter report in 2019 shows that in the first three quarters, the companys operating revenue reached 15.478 billion yuan, a year-on-year increase of 22.55%; its loss was 504 million yuan, a year-on-year increase of 58.49%. St Salt Lake mentioned in the previous performance forecast that in the report period, the companys comprehensive utilization project of phase I and phase II had a loss of about 475 million yuan, the salt lake Haina PVC integration project had a loss of about 661 million yuan, and the metal magnesium integration project had a loss of about 2.698 billion yuan.

On August 16, Taishan industrial filed an application to the court for restructuring the company on the grounds that st salt lake was unable to repay 4.39 million matured debts and obviously lacked solvency, and it will repay its corresponding claims through the restructuring process. On September 30, the intermediate peoples Court of Xining City, Qinghai Province ruled to accept the case of St Salt Lake bankruptcy and reorganization, and appointed st Salt Lake liquidation group as the salt lake share manager on the same day.

According to the latest announcement on restructuring progress disclosed by St Salt Lake, as of November 27, a total of 1038 creditors have declared their claims to the manager, with the declared amount of about 48.478 billion yuan. As of the same date, the amount of creditors rights that the manager has preliminarily reviewed and determined is about 45.375 billion yuan. In addition, two intended strategic investors, including Sinochem Group Co., Ltd. and Shaanxi coal chemical industry group Co., Ltd., submitted application materials to the manager, which is currently in the stage of material review and strategic investment negotiation.

Last years revenue of 10 billion yuan was less than 4.39 million yuan of debt? Does asset auction only deal with the loss of non-performing assets? On November 29, St Salt Lake issued a public announcement in response to public doubts about its bankruptcy reorganization procedures, property realization disposal pricing and other aspects.

St Salt Lake said that as of September 30, although the companys book consolidation has a capital of 726 million yuan, about 500 million yuan of cash is owned by consolidated subsidiaries, and the company has no right to use it freely. Of the 227 million yuan of its own funds, 203 million yuan has been frozen by the court. The remaining 16 million yuan will be directly used for the emergency payment required by production and operation to ensure the stability of production and operation. In the case of many debts that cannot be paid off after the deadline, the company has no own available funds to pay more than 4 million yuan of historical debts of the applicant.

St Salt Lake said the company has been unable to generate sustained and stable cash flow. Before entering the reorganization, due to overdue debts, the companys main bank accounts have been frozen, unable to carry out normal production and operation, unable to receive payment normally, and unable to obtain stable cash flow through production and operation. At the same time, due to the companys debt crisis, it can not obtain liquidity support through new financing or large-scale prepayment, St Salt Lake has no sustainable cash flow guarantee to pay off historical debts and carry out normal production and operation. For this asset disposal, St Salt Lake said that the main reason why the company was in trouble was that projects such as metal magnesium integration failed to achieve production profits according to the project design plan, but eroded the companys profits formed by relying on potash fertilizer and lithium industry resources. In order to achieve separation of good and bad, in vitro cultivation, avoid the companys profit being eroded by loss assets and affect the companys long-term development, the loss assets are included in the scope of assets to be disposed. St Salt Lake closed 0.7% lower at 8.57 yuan / share on December 3. Source: surging news editor: Yang Bin Gu nf4368

St Salt Lake said the company has been unable to generate sustained and stable cash flow. Before entering the reorganization, due to overdue debts, the companys main bank accounts have been frozen, unable to carry out normal production and operation, unable to receive payment normally, and unable to obtain stable cash flow through production and operation. At the same time, due to the companys debt crisis, it can not obtain liquidity support through new financing or large-scale prepayment, St Salt Lake has no sustainable cash flow guarantee to pay off historical debts and carry out normal production and operation.

For this asset disposal, St Salt Lake said that the main reason why the company was in trouble was that projects such as metal magnesium integration failed to achieve production profits according to the project design plan, but eroded the companys profits formed by relying on potash fertilizer and lithium industry resources. In order to achieve separation of good and bad, in vitro cultivation, avoid the companys profit being eroded by loss assets and affect the companys long-term development, the loss assets are included in the scope of assets to be disposed.

St Salt Lake closed 0.7% lower at 8.57 yuan / share on December 3.