Huishan dairys last fight: popular food throws new asset restructuring plan

category:Finance
 Huishan dairys last fight: popular food throws new asset restructuring plan


In addition, popular food will provide no more than 3 billion yuan, of which 2 billion yuan will be used to pay off all kinds of debts, replenish the working capital and production and operation of the new company in accordance with the relevant provisions of the draft reorganization plan; and the maximum capital of 1 billion yuan will be used as a common interest debt loan to pay off some debts specified in the draft reorganization plan, improve production and operation, or supplement cash flow.

Whether Yuexiu draft can be approved or not depends largely on whether creditors of financial institutions approve the draft. A person familiar with the latest progress of Huishan dairy assets restructuring disclosed to reporters. One of the important reasons why the draft of asset restructuring submitted by Yili and other potential restructuring parties has been rejected is that some creditors of financial institutions think that the debt repayment rate is low.

A creditor of a financial institution disclosed to reporters that their internal calculation found that the debt retention ratio and potential repayment rate of the creditors corresponding to the Yuexiu draft were higher than those of the previous asset restructuring plan, and the corresponding probability of approval should increase.

The reporter also learned that, according to the Yuexiu draft, the bankruptcy administrator will no longer set up sensitive creditors rights, and all ordinary creditors rights, including private equity funds claims, are divided into two categories, namely, financial ordinary claims and operational common claims. According to the new debt settlement method given by Yuexiu draft, ordinary creditors of operation class will get three choices: 10% cash settlement within one year; 16% cash settlement within two years; or 20% cash settlement within three years. However, the remaining part no longer has the right to convert shares; ordinary financial creditors get 8.5% debt retention ratio, but the remaining part of the creditors rights can be converted into equity of the new company. Gefei Chuangshi preferred No.1 and No.2 investment funds previously involved in Huishan dairys debt financing (with a debt scale of about 630 million yuan) will be divided into financial ordinary creditors.

The reporter learned that, if the 2 billion yuan capital contribution proposed by Yuexiu draft holds 67% of the equity of the new company, the potential liquidation rate of cash settlement, debt retention and equity conversion of the two funds is about 20% (including the interest paid during the duration); if the new company can be listed smoothly in the future, the corresponding equity value will continue to increase, which will further enhance the liquidation rate.

At present, we also hope that the asset restructuring plan of Huishan dairy will be approved as soon as possible, so as to have the opportunity to obtain higher repayment rate and avoid the worst situation of bankruptcy liquidation. A number of Gefei Chuangshi preferred No.1 fund investors said to reporters.

Sincerity of Yuexiu group

The reporter learned from many sources that, at the same time, new hope group, the parent company of new dairy (002946. SZ), also expressed its interest in asset restructuring of Huishan dairy.

However, in terms of debt retention ratio, new hope requires that the debt retention ratio of creditors of financial institutions be reduced to 8.2%, while Yuexiu group gives a retention ratio of 8.5% (the corresponding debt reduction rate is lower).

The creditors of the above-mentioned financial institutions disclosed to the reporter that through comprehensive comparison of various factors such as the amount of capital contribution, the pace of capital contribution, and the follow-up fund support, many creditors believed that Yuexiu groups asset restructuring plan was more advantageous. Finally, the court and the bankruptcy administrator agreed that Yuexiu draft was the latest voting plan for asset restructuring.

He said bluntly that the asset restructuring plan submitted by Yili, which plans to invest 1.5 billion yuan to acquire 67% of the equity of the new company, can only obtain 5.8% of the repayment rate for the debt left by the creditors of financial institutions, and require them to promise to provide low interest loans and other preconditions, which eventually led to the failure of Yilis plan. In comparison, the Yuexiu draft is sincere - on the one hand, the debt retention ratio is higher than the previous asset restructuring schemes; on the other hand, Yuexiu group has made a series of business support plans for Huishan dairy industry from the aspects of upstream forage planting, middle stream raw milk production, downstream fresh chain, etc., and gives the investment plan and revenue forecast from 2020 to 2025 After 3-year restructuring of the listed company, the company will be able to return some of its assets to the listed company.

As one of the oldest and largest dairy enterprises in the whole industrial chain in South China, popular food has been seeking business distribution nationwide. As early as August 2017, popular dairy holding Zhangjiakou old brand dairy company Great Wall dairy, opened the national strategic layout. Now, if they can successfully participate in the asset restructuring of Huishan dairy, they will soon extend their business tentacles to the northeast and further expand their business nationwide.

After all, Huishan dairys animal husbandry resources, brand value and its northeast market have important strategic value, which is one of the main reasons why Huishan dairy can attract potential industrial investment institutions to participate in asset restructuring. In addition, Huishan dairy has very important milk source assets, covering a wide area of planting base, modern self-supporting pasture and more than 100000 cows, as well as relatively mature consumer groups and markets in the downstream. The industrial chain is also relatively complete, so it has a high asset restructuring value.

According to the bankruptcy law, the Yuexiu draft will be the last vote on Huishan dairys asset restructuring journey, and the voting time will be the morning of October 14, 2020. There are two voting groups in this vote, including property secured claims group and ordinary creditors rights group. Whether Yuexiu draft can be passed depends on the approval of both voting groups and the approval of Shenyang intermediate peoples court.

If Yuexiu draft fails to pass, Huishan dairy will have to go into bankruptcy liquidation. He pointed out. According to the estimation of Yuexiu draft, if Huishan dairy had to go into bankruptcy liquidation procedure, it was preliminarily estimated that the debt repayment rate of all kinds of creditors was about 7.3%, which was a situation of loss to the government, the court, the administrator, all creditors and debtors.

According to the exclusive data obtained by the reporter, as of September 20 this year, the results of debt review of Huishan Dairy Groups series of enterprises showed that the amount of claims declared and confirmed was 29.68 billion yuan, including 6.31 billion yuan of property secured claims, 23.32 billion yuan of ordinary claims, 3.49 billion yuan of operating common claims, and 19.83 billion yuan of financial common claims.

Creditors rights of financial institutions avoid bankruptcy liquidation

The reporter learned from various sources that at present, many creditors of Huishan dairy financial institutions and investors of private equity products are quite optimistic about the approval of Yuexiu draft.

He acknowledged that it would be difficult for creditors to fully recover all investment principal. According to the relevant provisions of the Yuexiu draft, without considering the dilution of listed shares and other factors, the IPO market value of the new company in the future needs to reach about 58.2 billion yuan, and the creditors can recover all the principal; if the new company listing causes the equity dilution to 75% of the original shareholding ratio, then the listing market value of the new company needs to reach 77.7 billion yuan before the creditors can recover All principal.

At present, we are maintaining close communication with creditors of several banks to comprehensively assess the operability of Yuexiu draft and how high the actual debt repayment rate is. We will try our best to persuade all parties to agree to this draft and avoid the worst situation of bankruptcy liquidation. The creditor of the financial institution told reporters. As a matter of fact, many large banks have written off the bad debts of Huishan dairy industry and made capital provision. Therefore, they also hope to get part of the cash settlement as soon as possible, as well as a debt to equity capital operation scheme with higher return, so as to meet the internal requirements of banks to reduce the bad debt losses as much as possible. Some small and medium-sized banks that have not yet carried out bad debt write off and capital withdrawal also intend to make some concessions to avoid Huishan dairy from entering the bankruptcy liquidation stage. Frankly speaking, the liquidation rate of about 7.3% obtained by Huishan dairy can not meet the internal requirements of the bank for bad debt collection rate. Instead, it is better to introduce popular food of Yuexiu group for business support and capital operation, and perhaps we can get a bad debt repayment rate higher than the internal expectation. A credit department director of a small and medium-sized bank with Huishan dairy claims pointed out to reporters. At present, his small and medium-sized banks hope that Huishan dairys debt repayment rate can reach 18% - 20%. (author: Chen Zhi, editor: Bao Fangming) source: 21st century economic report editor in charge: Yang Bin_ NF4368

At present, we are maintaining close communication with creditors of several banks to comprehensively assess the operability of Yuexiu draft and how high the actual debt repayment rate is. We will try our best to persuade all parties to agree to this draft and avoid the worst situation of bankruptcy liquidation. The creditor of the financial institution told reporters. As a matter of fact, many large banks have written off the bad debts of Huishan dairy industry and made capital provision. Therefore, they also hope to get part of the cash settlement as soon as possible, as well as a debt to equity capital operation scheme with higher return, so as to meet the internal requirements of banks to reduce the bad debt losses as much as possible. Some small and medium-sized banks that have not yet carried out bad debt write off and capital withdrawal also intend to make some concessions to avoid Huishan dairy from entering the bankruptcy liquidation stage.

Frankly speaking, the liquidation rate of about 7.3% obtained by Huishan dairy can not meet the internal requirements of the bank for bad debt collection rate. Instead, it is better to introduce popular food of Yuexiu group for business support and capital operation, and perhaps we can get a bad debt repayment rate higher than the internal expectation. A credit department director of a small and medium-sized bank with Huishan dairy claims pointed out to reporters. At present, his small and medium-sized banks hope that Huishan dairys debt repayment rate can reach 18% - 20%.

(author: Chen Zhi, editor: Bao Fangming)