Cauldron group solvency of financial institutions feared upgrade

Polaris solar PV net news: the group after a debt default, begin the debt recovery of creditors in full swing. Has a number of banks have been asked to tianwei group repay its debts, and a freeze on the assets of the company, followed up recently demanded the immediate repayment of debt finance company subsidiary of Baosteel Group.

Tianwei Group’s troubles is the photovoltaic business, from the initial investment with a bang, to collapse in the near future, but a couple of years. This sample of cases, reveal the blind investment in some industries, as well as how resources can be easily wasted.

Chain of actions

Information from the China currency shows that Shanghai Baosteel Group financial LLC (hereinafter “the Baosteel’s financial”) and tianwei Group securities disputes, to the Shanghai Pudong new area people’s court proceedings, Decree of tianwei group at par immediately honour Baosteel financial holding 50,000,011 tianwei MTN1 notes face value of bonds, RMB 50 million yuan in principal and interest payments to Baosteel financial 2.92 million Yuan.

11 tianwei MTN1 notes issued in the inter-bank market, a market whose main investor is a large financial institution. 11 days MTN1 tianwei Group February 2015 deadline to issue ticket coupon, maturity date should have been for the 2016 February 24, total 1 billion yuan.

Baosteel financial requirements 11 tianwei MTN1 immediately honour, was in large part inspired by tianwei Group issued a product 11 tianwei MTN2-default events.

This series of events began on April 21, 2015, was supposed to be the day of tianwei group “11 tianwei MTN2” days of interest payments, but the company said it “fails to pay interest” and thus became the first defaulted public debt of SOEs.

This attracts investors great anxiety. On May 20, the group released “11 tianwei MTN1” resolutions of the holders meeting to determine and authorize the trustee Bank artificially making attorneys Dacheng. Request also asked the holders meeting tianwei 11 tianwei MTN2 accelerated due; request for additional group parent company of soldiers with the Group of the “11 tianwei MTN2” unconditional guarantee.

Shanghai Pudong new area people’s Court from the financial action group for accepting the case, which also recently received notices of appearance from the Shanghai Pudong new area people’s Court.

Bond analyst was quoted as saying that judging from the current situation, lead underwriters of CCB and its parent company as “11 tianwei MTN2” fallback will not strongly, whether ICS there is a lot of uncertainty in the future.

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Photovoltaic business cycle

Tianwei group has previously used by many institutions to recover debts. A number of banks have put the Group on the dock, call for a freeze on its assets.

Tianwei group has previously disclosed information, company tianwei new energy Holdings Limited (hereinafter “tianwei new energy company”) by project construction in January 2011 with the National Development Bank, ordnance equipment Group LLC of the RMB capital syndicated loan contract was signed (CDB lending amounted to 1.541 billion dollars). Tianwei Group provide a suretyship. New energy industry collapse, tianwei new energy company was exhausted, has been unable to make mortgage payments on time, while other violations, the Group also fails to perform warranty obligations. CDB to the Sichuan province higher people’s court proceedings, the Sichuan provincial higher people’s Court has been placing.

Tianwei group tianwei baobian 352 million shares of listed companies are banks ruled that waiting for the freeze. China export and Import Bank and tianwei new energy firm, tianwei new energy (Chengdu) PV module limited, tianwei group financial dispute over loan contract case, Beijing railway transportation Intermediate Court ruled that tianwei baobian 352 million shares held by the Group were waiting for freeze.

2014 of tianwei group financial report showed that losses reached an astonishing 10.1 billion yuan that year. Tianwei group employees of several reporters said the new energy business is still in production, limiting State.

Quagmire of tianwei group, cannot be explained simply by the solar cycle. Cnao’s audit report for the previous group of soldiers mounted displays, tianwei new energy investment decisions, such as specifications and other issues. From 2008 to 2012, the Group of 21 new fixed assets investment projects in energy, there are 20 unregistered Board to consider legal proceedings involving 15.275 billion yuan in investment. From a financial point of view, the Group has been facing bankruptcy. As of December 31, 2014, the Group-8.035 billion net worth, insolvent.

The latest data show that 2015 year accumulated losses of tianwei group has reached 210 million yuan in the first quarter, because it “belongs to a new subsidiary of energy market, excess production capacity, product prices, and the situation is not significantly better revenue cost upside down is serious, deep cuts in their income scale.”

Original title: cauldron of tianwei group solvency of financial institutions feared upgrade

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