Wuzhou international debt crisis pending delisting

category:Finance
 Wuzhou international debt crisis pending delisting


On July 24, time finance and economics called Shu Qicheng, founder of Wuzhou international, to find out. However, he refused to respond to the reason for his younger brother Shu cewans change of position on the ground that he had left the board of directors and was not clear about the situation. Wuzhou internationals official telephone has not been connected. Shucecheng stressed that the company is still in normal operation.

Forced to abdicate for resumption?

Since September 3, 2018, Wuzhou international has been suspended for nearly two years. According to the new listing rules of the Hong Kong stock exchange that companies suspended for 18 consecutive months can delist them, Wuzhou international should have been delisted on March 3, 2020.

Since then, because Wuzhou international submitted a request for review and delisting, the Hong Kong Stock Exchanges decision to cancel its listing has been delayed so far.

The Hong Kong Stock Exchange has also offered Wuzhou international conditions to resume trading. In addition to disclosing the undisclosed annual report and giving the debt restructuring plan, the HKEx also added three new conditions on the companys management on October 21, 2019: 1. To prove that the company has taken appropriate internal control and procedures to comply with the listing rules; 2. To prove that there are no reasonable regulatory issues concerning the integrity of management or the integrity of any person who has a significant impact on the management and operation of the company And 3. To prove that all directors of the company meet the competency level commensurate with their positions as directors of listed issuers.

Among them, on the issue of management integrity, shuce pill, who resigned this time, violates relevant conditions.

From June 1, 2018 to July 21, 2020, shuce pill has been involved in a total of 61 lawsuits, according to the China executive information disclosure website. Most of the reasons are that the company of shuce pill has contract disputes and failed to perform the payment obligations. As the legal representative, shuce pill has been listed as the person who has been executed in breach of trust or restricted consumer.

Although the elder brother shucecheng left his post before the release of the new guidelines for the resumption of trading, from May 20, 2018 to July 21, 2020, the total number of litigation cases involved was up to 59. The reason is similar to that of his younger brother shucewan, and he is listed as a dishonest person subjected to execution or restricted consumer member.

Obviously, the two brothers of Shus family, who have been involved in the lawsuit, have been unable to meet the requirements, which has become an important obstacle to the resumption of trading.

Wuzhou internationals debt crisis began on July 4, 2018. Since then, there have been many debt defaults and legal disputes. Among the newly appointed Executive Directors, three of them are financial or legal executives. It is not difficult to see that Wuzhou international is eager to deal with the crisis.

The debt crisis remains unresolved

Five civil lawsuits on debt disclosed on July 4, 2018 opened the prelude to the default of Wuzhou international debt. Although shucecheng repeatedly stressed that Wuzhou internationals daily business activities were in normal progress in an interview with time finance and economics, the debt disputes only increased.

Previously, most of the debt disputes of Wuzhou international came from overdue bonds and loans of banks, trust companies, asset management companies and natural persons. July 23, the latest disclosure of a lawsuit notice, Wuzhou international began to have money relations with construction units.

In the face of tens of billions of debt, small income is obviously a drop in the bucket. In order to repay its debts, Wuzhou international sold its projects at a loss.

As of July 24, Wuzhou international has sold seven real estate assets in total. Except for the sale of Xuyi Wuzhou international, which ended in failure, the remaining two recorded gains and the rest all suffered losses.

All these real estate assets of Wuzhou international are creditors. According to time finance and economics, most of the real estate projects under Wuzhou international are commercial property and commercial complex projects with large capital deposition and long payback period, and their branches are located in Wuxi, Yancheng, Huaian, Nantong, Jiangyin, Yixing, Dali, Baoshan, Xiangyang and other third and fourth tier cities that are not conducive to the development of commercial real estate.

Or because real estate projects are difficult to change hands. Wuzhou international even started selling investment funds. On April 16, this year, Wuzhou international announced that it would sell some equity of the investment fund to two buyers in Ningbo at the price of RMB 12.1 million and RMB 20 million respectively, in order to repay some debts in the first phase of 2017 corporate bonds and the second phase of 2016 corporate bonds. A real estate insider in Wuxi disclosed to the times finance and economics that although the current commercial projects of Wuzhou international in Wuxi are not so bleak, they are not well managed. In his opinion, it is inevitable for enterprises like Wuzhou international, which have a large number of commercial complexes, to decline, because commercial complexes have always been difficult to do. According to the official wechat, the latest development of Wuzhou international about project operation occurred on June 19, when Luoyang Xigong District held a centralized commencement ceremony of major projects in the second quarter of 2020. Luoyang Wuzhou cross border e-commerce Industrial Park is one of the transformation and upgrading projects. Source: time weekly editor: Guo Chenqi_ NBJ9931

Or because real estate projects are difficult to change hands. Wuzhou international even started selling investment funds. On April 16, this year, Wuzhou international announced that it would sell some equity of the investment fund to two buyers in Ningbo at the price of RMB 12.1 million and RMB 20 million respectively, in order to repay some debts in the first phase of 2017 corporate bonds and the second phase of 2016 corporate bonds.

A real estate insider in Wuxi disclosed to the times finance and economics that although the current commercial projects of Wuzhou international in Wuxi are not so bleak, they are not well managed. In his opinion, it is inevitable for enterprises like Wuzhou international, which have a large number of commercial complexes, to decline, because commercial complexes have always been difficult to do.

According to the official wechat, the latest development of Wuzhou international about project operation occurred on June 19, when Luoyang Xigong District held a centralized commencement ceremony of major projects in the second quarter of 2020. Luoyang Wuzhou cross border e-commerce Industrial Park is one of the transformation and upgrading projects.