Polaris solar PV net news: State-owned enterprises as the first domestic bond default, Baoding tianwei Group (hereinafter the Group) draft bankruptcy reorganization in court after 9 months has finally been published. New financial reporter was informed only on October 8, administrator has issued a draft plan. Worth noting is that failures in new energy fighting the LDK Peng Xiaofeng, Chairman of the company, as the restructuring of the group, control group destiny.
Directly as the Group restructuring is a private enterprise in Jiangsu Province, and its shareholders are PV companies listed overseas SPI. Peng Xiaofeng, Chairman of SPI. Earlier, the LDK group entered bankruptcy reorganization proceedings. The photovoltaic field of well-known entrepreneurs never give up this industry, has been seeking to make a comeback after many fell to the opportunity.
Under the draft restructuring, ordinary creditors final repayment rate was 30%, but payments began after 5 years, 8 years; while secured creditors can get 100% pay off, but 90% also has the above schedule. In addition, the creditor will have a debt-for-equity offer 30% of the amount but not more than pay off the debt.
Measured in existing programmes, restructuring in the short term only cost about 400 million yuan in cash to pry tianwei assets of 4.7 billion yuan, creditors that restructuring programme of intention.
The first meeting of creditors vote on the draft will be held on November 2, according to the creditor communications in the near future, this version’s reorganization plan is unlikely to be passed. But the law, if creditors voting out rationalisation plan can be modified, but if the vote twice to no avail, or management of the debtor may apply for mandatory adjudication by the Court.
Creditors worry is that banks, businesses and the courts there is a big difference in value, also enterprises set a low recovery rate in the past, backed up by strong Court Conference for creditors to accept the rationalisation plan does not reflect reality, the creditors in a relatively weak position.
The group involves the right debt 8.838 billion yuan. According to the new reporter, as of October 8, 2016, there are 61 creditors declared claims amount amounted to 13.48 billion yuan, by the court adjudicating the 8.838 billion yuan, including financial security debt amounted to 2.134 billion yuan.
Creditors of 56 companies and most financial institutions. Including the agricultural Bank of China, the State Development Bank, Bank of communications, Shanghai Pudong Development Bank and a number of banking institutions; public Boshi Fund, Fund, ICBC also has accounts of products involved.
30% discharge rate with 8-year repayment period
Restructuring after the Bill is issued, the creditor to challenge the debt restructuring offer programmes.
According to the draft of bankruptcy restructuring, 30% out of the ordinary creditors as a credit amount, the remaining 70% exemption. 30% part will amortize, 8 years after the approval of the reorganization plan to pay off, 5th year periodic cash payments, without interest during the repayment period.
Claims secured with property, although it is anticipated that the settlement was 100%, but within 6 months of the approval of the reorganization plan will be cash only settlement 10%, the remaining 90% will be paid in accordance with 8 years of general creditors to pay off.
Common claims in the small claims, which claims less than 1 million will receive full settlement, and within 6 months. Workers ‘ claims and tax claims will be paid.
Within a year of the reorganization plan approved, creditors have an opportunity to choose not to 30% of the amount more than pay off the debt-for-equity, creditor debt-for-equity is not selected within the option period, performed as cash settlement.
Guangda asset evaluation based on limited (hereinafter referred to as Hebei in the Everbright) providing reports, the group assets after adjustments and the reduction in value of 3.7546 billion yuan, according to estimates, management left the ordinary creditor bankruptcy scenario is 14.93%. Managers also mentioned in the draft, this actual repayment rate may be much lower than forecast ratio solvency analysis.
One creditor told caixin said, given the draft restructuring of 30% higher than the liquidation, but probably 8 years discount rate is considered.
But creditors were satisfied that the assets of the calculations may be underestimated and so depress estimated recovery rate, in the reforming party recovery rate of bankruptcy reorganization plan to widen the gap.
Creditors a reason for these questions is this assessment of the administrator below the appraised value of restructuring and reorganization for the Group’s overall value to 4.716 billion yuan. In addition, the assessment of qualifications is also a creditor of the queries mentioned above another reason.
A bank creditors to finance new reporters, decided when creditors did not participate in the asset evaluation agencies, but is specified by the administrator. And because the Group of assets held by a large part of shares of listed companies, rating agencies do not have the securities practice qualification, their professional capabilities cannot be accepted.
Thus, creditors reach a consensus at a recent briefing, hoping to hire a third-party authority to re-evaluate assets, and hope the Manager will issue a detailed assessment of files, rather than disclose the results.
It is understood that part holds the same electric group of the assets (600550. SH) 22.96% a total of 352 million shares, others are land and equipment.
Peng Xiaofeng appeared in reforming
Tianwei group investment in private enterprises in the reforming party for a beauty too (Suzhou) Limited (hereinafter referred to as the United States too) in its controlling shareholder, SPI new energy technology holdings (hereinafter the SPI), is a company registered in the Cayman Islands, the United States NASDAQ-listed companies, the main business focused on new sources of energy (PV) power generation. Jiangsu green treasure of a security is owned by SPI finance leasing company (hereinafter referred to as the green treasure).
According to the new reporter, collected in the process of restructuring, including investment capital of 5 companies submitted a letter to the Manager, but for a variety of reasons to quit, leaving only the United States is investment.
Restructure the draft said restructuring will increase capital investment of about 3.2 billion yuan, for the Group and its subsidiaries are expansion, technological renovation and construction, implement comprehensive save machine subsidiary of tianwei group. Funding from the United States on the one hand too invested (Suzhou) limited its own funds and investments from shareholders and partners.
But creditors worried is that restructuring, shareholders and guarantee financial strength are not actually strong, is likely to be used in the future establishment of its assets valued at 4.7 billion yuan to pry a lever for financing, realize the capital investment of 3.2 billion yuan. Once the final inventory of assets failed, will bring another group of creditor’s creditor, the existing damage to the interests of creditors.
According to the inspection report, us too group registration the paid-up capital for us $ 56.314 million, at the end of June 2016, the company’s assets totaled 842 million Yuan, liabilities totaled 498 million Yuan-7.1012 million yuan in net profit. Controlling shareholder of SPI while the United States listed company, but its share price has risen from $ 18/share plunge in January this year, from the current $ 2.52 per unit.
Sponsor green treasures of strength has come into question. According to the inspection report, green treasure registration paid up capital of US $ 44,999,980, as of late July 2016, the company’s total assets of 320 million Yuan, debt totals 125 million Yuan-17.9899 million yuan in net profit.
Worth noting is that SPI is also the Chairman of the same into the bankruptcy reorganization of former Chairman Peng Xiaofeng of LDK group.
Peng Xiaofeng’s name is no stranger to financial institutions and capital markets, he was Chairman of Chinese photovoltaic leader LDK LDK, also ranked sixth on the 2007 hurun China rich list. Most talked about is the fail twice in the photovoltaic industry and was facing personal bankruptcy, but still looking to make a comeback and get Shi Yuzhu, Xu jiayin, who invested.
Although the experience is thrilling, but the Group of creditors, Peng Xiaofeng good business stories is not activating the safeguarding of assets, or even instead. “Peng Xiaofeng has not given up the PV industry, is looking for a comeback, but he was also a heavy bet on people, not sure if it also wants to use tianwei to a bet, and is pulling all creditors to gamble with him. “The creditors said.
The draft, after the reorganization, the group subjects of law unchanged, but the original contributor rights zero, restructuring and creditors of the debt-for-equity becomes the Group’s shareholders. New corporate Board of Directors, composed of members from 9, reforming party nominated 7, debt-for-equity shareholders to nominate 2 people.
While creditors hope to creditors appoint additional directors on the basis of this veto, supervisors appointed by the creditors, and thus able to participate in the company’s management decisions.
Problems left over by history
Some creditors to restructure programmes unutterable trust, have been questioning the group trying to escape debts.
Tianwei group formerly known as the Baoding transformer plant was established in 1958, restructured in 1995 for State-owned enterprises. In January 2008, the Commission put the group transfers to the central group. Main power transmission and transformation equipment, PV and wind power equipment manufacturing, registered capital: 2.109 billion yuan.
2013, in order to keep electric listed companies ‘ resources, soldiers loaded group had electrical and asset restructuring the group, photovoltaics, wind power and other new energy listed companies in industries all stripping of excess, the replacement to the group.
In December 2014, the electrical shed bad assets again, Yingli solar 7% per cent to 389 million Yuan were sold to the group. New financial reporter learned that, 2012, 2013 and 2014 1-September, Yingli-650 million net profit, respectively,-440 million-200 million Yuan.
End of 2013 start electric merged within the new energy subsidiary, into clean power transmission and transformation equipment manufacturer, since 2014 smooth losses, stock delisting has withdrawn its alert, bonds have also resumed trading. Accordingly, tianwei new energy business profitability deteriorated and provision for impairment losses increased, until the insolvent.
When despite the explain why bankruptcy reorganization, the group said to be original because of the environmental impact of new energy market as a whole, tianwei new energy subsidiary, atrophy, caused by overcapacity in the market. But market analysts, the Group solvency, cannot be explained simply by industry downturn, more because the Group of reckless investment, management deficiencies.
For example, the National Audit Office 2014 soldiers loaded during the Group’s audit, and found that it belongs to the Group of new energy investment decisions, such as specifications, poor performance, and even serious losses, and so on.
From 2008 to 2012, the Group of 21 new energy in fixed asset investment projects, there are 20 without the consideration of the Board of Directors statutory programs, such as involving 15.275 billion yuan investment.
From 2010 to 2012, the group without the approval of the national development and Reform Commission arbitrarily raised its investment plan, overseas energy investment project implemented by design flaws and other reasons was forced to shut down, bankruptcy and liquidation.
Until the end of 2012, the Group has 3 Ultra plans to invest 285 million yuan of investment projects, reported to the authorities for not according to stipulations; 11 projects started construction without soldiers with Group approval, involving investment of 2.485 billion yuan.
Original title: into the Group reorganization solar hero Peng Xiaofeng comeback?