Huishan dairy’s unexpected delay in asset restructuring voting intensified the game of creditors’ interests

The reporter of 21st century economic news learned exclusively that the voting process of Yuexiu plan, which was originally scheduled to be held in the morning of October 14, was postponed to the 30th of this month due to the postponement of voting by some creditors. < / P > < p > “to some extent, it also reflects that some creditors still have concerns about Yuexiu plan.” A person familiar with the matter told reporters. Take the ordinary creditors of operation as an example. Most of the ordinary business creditors within 500000 yuan are in favor of Yuexiu plan because they have been paid off in cash. However, many ordinary business creditors above 500000 yuan are opposed to it because of the low debt retention ratio and cash repayment rate. The reporter has learned from many sources that the creditors who propose to postpone the voting mainly come from creditors of financial institutions. The reason is that some financial institutions hope to moderately increase the debt retention rate and cash settlement to persuade the relevant internal departments to agree to Yuexiu plan; in addition, some financial institutions hope that Yuexiu group can give a more clear plan for the future listing of the new asset restructuring company, so that they can see the feasibility of more capital recovery. < p > < p > the so-called Yuexiu plan is the draft of assets reorganization of Huishan dairy industry submitted by the popular food group company of Guangzhou Yuexiu group. To be specific, Yuexiu group, on the one hand, invested 2 billion yuan in cash to hold 67% of the equity of the new company (2 billion yuan of registered capital), on the other hand, it required the equity conversion creditors to contribute 985 million yuan at the price of creditor’s rights, and hold 33% equity of the new company (985 million yuan of registered capital). In addition, Yuexiu group will provide no more than 3 billion yuan, of which 2 billion yuan will be used to pay off all kinds of debts, supplement 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 the common interest debt loan to pay off some debts, improve production and operation or supplement cash as stipulated in the draft reorganization plan Flow. < p > < p > specifically, when it comes to debt repayment of creditors, ordinary operating creditors within 500000 yuan will be paid in full cash, and those with more than 500000 yuan will be given three choices: 10% in cash within one year; 16% in two years; or 20% in three years. However, the remaining part will no longer have the right to convert shares; most of the ordinary financial creditors get 500000 yuan of cash settlement two years before the asset restructuring, and at the same time, obtain 8.5% debt retention ratio, and the related creditor’s rights will be converted into equity of the new company. < p > < p > according to the reporter, there are two voting groups in this voting, including the property guarantee creditor’s rights group and the ordinary creditor’s rights group. If the Yuexiu draft is to be passed, the consent of the above two voting groups should be obtained, and the Shenyang intermediate people’s court will rule for approval. < / P > < p > “since this vote is the last vote on asset restructuring of Huishan dairy, creditors are very cautious.” According to the above-mentioned people, it is not ruled out that before the voting on October 30, the relevant provisions of Yuexiu plan will be adjusted to meet the capital preservation demands of some creditors. < / P > < p > “the delay of voting time to October 30 is really unexpected.” A creditor of a financial institution told reporters. Previously, he communicated with a number of creditors of financial institutions and found that they all agreed with Yuexiu plan. The reason is that, on the one hand, the debt retention rate and investment in asset revitalization given by Yuexiu plan are higher than those of the previous potential investors. On the other hand, this is also the last round of voting on assets restructuring of Huishan dairy. If it is not passed, Huishan dairy will inevitably enter the bankruptcy liquidation stage. At that time, the creditor can only get 7.3% debt repayment rate, which is far lower than the potential debt repayment rate of 20% estimated by Yuexiu plan. < / P > < p > the reporters have learned from many sources that the main creditors who propose to postpone the voting are the creditors of financial institutions who hold a large number of property guaranteed claims. They think that they should get higher cash settlement and debt retention ratio than other ordinary financial creditors. In addition, they are also discussing the gains and losses of Yuexiu plan, including whether it can be adjusted higher It also requires Yuexiu group to give a clearer listing plan for the new company, so as to improve the actual capital recovery to meet the requirements of bad debt collection ratio within the bank. < p > < p > a city commercial bank creditor disclosed to the reporter that due to the low amount of financial guarantee claims, they have no objection to the debt retention rate at present, but they hope that Yuexiu group can increase the cash settlement amount of creditor’s rights of financial institutions, so that they can persuade the bank’s senior management to agree to Yuexiu plan. After all, if the cash settlement amount of 500000 yuan obtained by the assets reorganization draft is estimated, their bad debt collection ratio is less than 5%, which can not meet the internal bad debt disposal regulations of the bank. If the IPO planning of the new company stays on paper for a long time, then the asset collection department will be punished. < / P > < p > the above-mentioned insiders told reporters that this phenomenon also occurs in the ordinary creditors of the business class. The ordinary creditors of operating category below 500000 yuan basically hold the affirmative vote because they have obtained full cash settlement, but some ordinary creditors of operation category with more than 500000 yuan hope to increase the cash settlement rate, otherwise, they actually get less than 500000 yuan of cash settlement, and the “treatment” is not the same as the former. < / P > < p > “in addition, some creditors of small and medium-sized banks are in a wait-and-see attitude. They hope that creditors of large banks can come forward to communicate with Yuexiu group to strive for higher debt retention ratio and cash settlement.” He revealed that this is also one of the important reasons why they asked for an extension of voting. Now the vote has been postponed to 30 days, giving them another period of time to play games to get better debt solutions. < / P > < p > in addition to clearly proposing in the draft that the new company should be integrated with Guangzhou FengXing Dairy Co., Ltd. and planning A-share listing, Yuexiu group also plans to steadily expand the upstream assets of Huishan dairy industry after taking over Huishan dairy industry, that is, to reach the scale of 200000-230000 cattle by 2025, and realize the annual output of raw milk of 1 million tons to 1.3 million tons, including about 450000 tons to 500000 tons for self use In addition, Yuexiu group proposes to achieve the sales target of 2-2.5 billion yuan for liquid milk products, and achieve 80% utilization rate of infant powder production capacity; the downstream market will vigorously develop fresh chain and new retail mode, focus on Liaoning Province, expand the northeast area, and gradually transfer to the first and second tier cities. < p > < p > a creditor of a financial institution disclosed to the reporter that the biggest asset restructuring value of Huishan dairy is milk source. However, whether Yuexiu group can effectively revitalize the upstream milk source assets of Huishan dairy industry not only affects the success or failure of the asset restructuring, but also relates to whether the new asset restructuring company can be listed as soon as possible, so that many creditors can get higher capital recovery. In particular, they sent people to investigate how to integrate the resources of the dairy industry in Zhangjiakou group, especially how to integrate the dairy industry of Yuexiu group He told reporters. In fact, many creditors of financial institutions are also waiting for the results of their field investigation and investigation to decide whether to vote in favor. He said that since Yuexiu plan is the last round of voting in the asset restructuring process of Huishan dairy, the voting time on October 30 is unlikely to be postponed again. < / P > < p > “frankly, no one wants to see Huishan dairy enter the bankruptcy liquidation stage, because for the government, the court, the administrator, all creditors and debtors, it will be a situation of many losses.” Said a creditor of a financial institution. According to the exclusive data obtained by the reporter, as of September 20, the creditor’s rights review results of Huishan Dairy Group’s series of enterprises showed that the amount of claims declared and confirmed was 29.68 billion yuan, including 6.31 billion yuan of property guarantee claims, 23.32 billion yuan of ordinary claims, 3.49 billion yuan of operating general claims and 19.83 billion yuan of financial common claims. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. 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