Bond default! Huachen group is suspected to be guilty of Xinpis violation of laws and regulations

 Bond default! Huachen group is suspected to be guilty of Xinpis violation of laws and regulations

According to the CSRC, the CSRC attaches great importance to the protection of the legitimate rights and interests of investors, comprehensively implements the zero tolerance requirement of the financial commission of the State Council, severely crack down on all kinds of illegal acts in accordance with the law, and maintain good order in the bond market. At the same time, we will continue to maintain and give full play to the normal functions of the bond market, and support enterprises of all types of ownership to develop financing through the bond market in accordance with the law. In the next step, the CSRC will do a good job in supervision in accordance with the law, firmly hold the bottom line of no systemic risk, deepen reform, improve the system, implement responsibilities and strict supervision, so as to promote the stable and healthy development of the bond market.

On the same day, the Shanghai Stock Exchange issued a regulatory warning letter to China Merchants Securities and gave a written warning to China Merchants Securities. The Shanghai Stock Exchange found out that in the process of entrusted management of 17 Huaqi 05 bonds, China Merchants Securities failed to timely perform the duty of information disclosure of the trustee and failed to effectively perform the duty of credit risk management of the trustee.

According to the courts ruling, brilliance groups assets are insufficient to pay off all its debts, and it has the cause of bankruptcy stipulated in the enterprise bankruptcy law. But at the same time, the group has the value and possibility of rescue, so it is necessary and feasible to restructure.

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Heavy weight! Brilliance Group officially went bankrupt and reorganized and said it would try its best to recover the losses of its creditors

Shenyang intermediate peoples court ruled on the 20th to accept the creditors application for reorganization of brilliance Automobile Group Holding Co., Ltd. (hereinafter referred to as brilliance group), marking that the auto enterprise has officially entered the bankruptcy reorganization procedure.

As a state-owned enterprise in Liaoning Province, brilliance group directly or indirectly controls and shares in four listed companies, and through its listed company Brilliance China and BMW jointly established brilliance BMW company. There are three independent brands of Zhonghua, Jinbei and Huasong, and two joint venture brands of brilliance BMW and brilliance Renault.

In late October, the 1 billion yuan private placement bonds issued by brilliance group only paid interest when they were due, but the principal failed to be paid, which caused concern. On November 13, a creditor filed an application for bankruptcy reorganization of brilliance group in accordance with the law.

According to the relevant person in charge of the state owned assets supervision and Administration Commission of Liaoning Province, brilliance group has been operating poorly for a long time, its own brand has been in a state of loss, and the debt ratio remains high. Since 2018, Liaoning provincial government and relevant departments have been trying to help brilliance group solve the cash flow problem, but its debt problem is too heavy to return.

This year, novel coronavirus pneumonia affected the situation of brilliance groups independent brand management, and the debt problem was accumulated for a long time. According to the semiannual report of brilliance group this year, the total debt of the group level is 52.376 billion yuan, and the asset liability ratio is more than 110%, and it is unable to finance. In order to solve the debt problem, the relevant parties set up the brilliance group bank debt committee to strive for debt reconciliation, but failed.

According to the law, Shenyang intermediate peoples court will appoint the administrator of brilliance group to be fully responsible for all work during the period of enterprise bankruptcy and reorganization, including accepting and confirming the creditors claim declaration, preparing the draft reorganization plan and submitting it to the creditors meeting for voting. Creditors will be paid according to the reorganization plan finally approved by the court.

The relevant person in charge of brilliance group said that the restructuring only involved the groups own brand plate, not the groups listed companies and joint ventures with BMW and Renault. As the most important partner of BMW in China, the group is expected to achieve rebirth after restructuring and try its best to recover the losses of creditors. At the same time, BMW Brilliance is still a stable source of profits in the future, and will continue to launch new products and expand the scale.

Source: China Securities Journal Author: Zhang Qinfeng min Xiuli editor: Wang Xiaowu_ NF