Rongchuang v. LETV case termination execution procedure
RMB 1.98 billion in arrears not recovered
On January 7, China judicial document website published the execution ruling of the third intermediate peoples Court of Beijing on the arbitration of rongchuang Real Estate Group Co., Ltd.
The ruling shows that the ruling made by China International Economic and Trade Arbitration Commission has taken legal effect. The executor rongchuang Real Estate Group Co., Ltd. applied for compulsory execution. The third intermediate peoples Court of Beijing filed a case for execution on October 8, 2019, with the subject amount of 1.981.276 million and 22 yuan and corresponding interest.
According to the investigation, there is no property available for execution under the name of LETV. On October 31, 2019, the court waited to freeze the equity contribution of Lerong Zhixin Electronic Technology (Tianjin) Co., Ltd. held by LETV, the executee, which is 66.859187 million yuan, and rongchuang Real Estate Group Co., Ltd. has the pledge priority.
In addition, on December 6, 2019 and December 20, 2019, the court waited for the execution of the trademark right under the name of LETV. On November 22, 2019, we will wait for the execution of the patent right under the name of LETV.
The ruling also showed that the third intermediate peoples Court of Beijing had included the person subjected to execution in the list of dishonest persons subjected to execution and had taken measures to restrict high consumption. Now, the applicant is unable to provide other property clues for the executor to execute. The executor has no property for execution. The Applicant acknowledges the investigation results and agrees to terminate the execution procedure in accordance with the law.
Fund Jun noted that as of December 31, 2019, Jia Yueting held 920.47 million shares of LETV, accounting for 23.07% of the total share capital of the company, of which 857.35 million shares had been pledged, accounting for 21.49% of the total share capital of the company; the 920.47 million shares of the company he held were frozen and waiting for freezing by judicial departments such as the third intermediate peoples Court of Beijing.
Sun Hongbin twice shouted to LETV to pay back the money
In June last year, rongchuang demanded to repay 3.2 billion yuan
In fact, before the end of the execution process, rongchuang has repeatedly called LETV to repay the money.
This is not the first time the two applicants have called for debt. The debt that rongchuang and Tianjin Jiarui requested to arbitrate LETV to repay originated from the earlier borrowing.
On November 20, 2017, at the 50th meeting of the third board of directors of LETV, the proposal on LETV information technology (Beijing) Co., Ltd. to apply for a loan of 1.29 billion yuan from Tianjin Jiarui Huixin Enterprise Management Co., Ltd. and the proposal on providing counter guarantee and associated guarantee for the companys loan were reviewed and approved. LETV borrowed 1.29 billion yuan from Tianjin Jiarui.
In this loan, LETV pledged its 4231096 yuan registered capital and derivative rights and interests, 398 million yuan registered capital and derivative rights and interests of LETV cloud to Tianjin Jiarui; rongchuang provided joint and several liability guarantee for the company with a total amount of no more than 3 billion yuan. Meanwhile, the company provided the 83644200 yuan registered capital and derivative rights and interests of LETV new to rongchuang real estate For counter guarantee, the total amount of guarantee shall not exceed 3 billion yuan.
At that time, it was difficult for LETV, which was currently insolvent, to repay its huge debts without recovering its own claims. In the announcement, LETV said that listed companies are currently facing greater operating and non operating liabilities, financing loans and debt repayment pressure.
In fact, this is not the first time LETV has been forced to debt by rongchuang.
Obviously, the debt collection in 2018 didnt work. LETV still didnt pay back. It is worth mentioning that Zhang Wei, the director, general manager and chief financial officer of LETV, resigned after being urged twice by rongchuang.
LETV announced that the board of directors received the resignation report of Zhang Wei, director, general manager and chief financial officer, on June 14, 2019. The board of directors fully respects Zhang Weis personal will and accepts his resignation application.
In December 2018, LETV announced that Liu Shuqing, general manager of LETV, resigned due to the adjustment of personal work arrangement. In addition, Yuan Bin, deputy general manager of LETV, and Li Yuhao, director of LETV also submitted resignation report due to personal reasons.
On May 25, 2019, LETV disclosed that Liu Shuqing applied to the company for resigning from LETVs chairman, director and other positions due to personal reasons. After resigning, Liu Shuqing did not hold any position in LETV. Liu Shuqing is rongchuangs representative to LETV. In March 2018, sun Hongbin resigned as chairman of LETV. Liu Shuqing took over the important task. Therefore, her resignation caused a storm.
Whats more surprising to the outside world is that Liu Yanfeng, a former supermarket employee, was nicknamed chairman of Majia instead of rongchuang. The move is seen as a strategy for rongchuang to abandon LETV.
LETV was disciplined by Shenzhen Stock Exchange again
Sun Hongbin and others were criticized
As early as 2016, there was a serious crisis in the whole LETV capital chain. At that time, sun Hongbin, who came from rongchuang, was like a hero of the world. He raised 15 billion yuan to help LETV.
On January 13, 2017, LETV announced that rongchuang entered LETV.
But as we all know, this 15 billion yuan investment has gone down the drain. After the two best assets of LETV changed their surnames to sun, LETV only had a pile of bad debts and a lot of chicken feathers.
According to the 2018 annual report, LETV achieved an operating revenue of 1.558 billion yuan, a net profit loss of 4.096 billion yuan attributable to shareholders of the listed company, and a net asset of - 3.026 billion yuan attributable to the parent company at the end of 2018. On May 10, 2019, Shenzhen Stock Exchange announced that LETV was suspended from listing.
As for sun Hongbin, he still hasnt completely got rid of the influence brought by lucky TV. Just a few days ago, LETV was disciplined by Shenzhen Stock Exchange.
On January 2, LETV announced that the decision on disciplinary action against LETV information technology (Beijing) Co., Ltd. and related parties issued by Shenzhen Stock Exchange on December 31, 2019 believed that LETV had clear violation facts and serious circumstances, so LETV was punished with public condemnation.
In addition, on December 31, 2019, Shenzhen Stock Exchange also issued a decision on the punishment of Jia Yueting, sun Hongbin, Liu Shuqing, etc., in which Jia Yueting was publicly condemned and given a punishment of publicly determining that he was not fit to serve as a director, supervisor and senior manager of a listed company for life; sun Hongbin and Liu Shuqing were criticized in a notice.
It is worth mentioning that LETV also announced that in accordance with Article 9.22 of the guidelines for the standardized operation of GEM listed companies of Shenzhen Stock Exchange (revised in 2015), the company will hold a public apology meeting through remote network. LETV plans that the apology will be held from 8:00-10:00 a.m. on Wednesday, January 8. Liu Yanfeng, chairman and general manager of the company, and Wu Baoyu, director attended the meeting. Source: editor in charge of China Fund News: Yang bin_nf4368
It is worth mentioning that LETV also announced that in accordance with Article 9.22 of the guidelines for the standardized operation of GEM listed companies of Shenzhen Stock Exchange (revised in 2015), the company will hold a public apology meeting through remote network.
LETV plans that the apology will be held from 8:00-10:00 a.m. on Wednesday, January 8. Liu Yanfeng, chairman and general manager of the company, and Wu Baoyu, director attended the meeting.