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Huishan Dairy's first disclosure of the reorganization plan will divest 83 subsidiaries' assets

February 11, 2019 00:23
Author: Li Yong

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New year and new weather. On February 8, the first day of the opening of the Hong Kong Stock Exchange in the Spring Festival,Huishan DairyreleaseannouncementSaid that the existing mainland management submitted to the management a total of 83 Chinese subsidiaries.ReorganizationThe plan, if fully implemented according to the plan, the assets of 83 Chinese subsidiaries will be divided from the group and injected into the newly established company.

Multi-dimensional debt service

The sound of firecrackers in the New Year’s Day has not disappeared, or it is also a good color for the “pig”. On the first day of the opening of the Hong Kong Stock Exchange, the announcement of Huishan Dairy announced the new reorganization plan. This is the first time since the outbreak of the company's crisis that the reorganization plan was disclosed to the outside world through a formal announcement channel.

According to the disclosure of Huishan Dairy Announcement, in the reorganization plan, the assets/shares of 83 Chinese subsidiaries will be injected into the newly established company, and the liabilities of 83 Chinese subsidiaries will be cash repayment, debt extension, debtConversion(The shares of the new company) and other methods to repay. According to the announcement, Huishan Dairy Manager said in a recent communication with creditors that it has not received any formal restructuring plan until the deadline of November 15, 2018. In view of this, the company's existing mainland management submitted a restructuring plan covering the above 83 Chinese subsidiaries to the Manager.

The announcement also shows that if the domestic restructuring plan is implemented according to the current recommendations, the above 83 Chinese subsidiaries / their assets will be divided from the group. In addition, Huishan Dairy stock will continueSuspension.

In an interview with the Securities Daily reporter, some insiders said that because the creditors involved are many and complex, and the reorganization plan is currently only a draft, it cannot be regarded as the final plan, and there is still the possibility of further revision. Huishan is a regional large-scale dairy company whose end products are local.Common peopleIt has a good reputation, and it is the best result to re-create the new life through reorganization.

Realizing reorganization is the best way out

“In the past, Huishan’s promoters were the most, and now they are rarely seen, and there are fewer counters.” In a large supermarket in Heping District, Shenyang, other dairy brands’ sales staff told Securities Daily that “ The original big cabinet is his family's yogurt, milk, and now it is obviously shrinking." A grandfather who is buying yogurt told reporters that he bought his grandson for ten days of yogurt, saying that he did not add it, and the taste was good.

The reporter learned that as a dairy brand that grew up in Shenyang, Huishan's ten-day series of yogurt and fresh doctor series milk are very popular among local people. When the company's momentum was strong in the past few years, not only the product categories were abundant, but also new products were often introduced. “Some of the former promoters have switched to other brands.” The salesperson sighed, “It’s okay when I first happened, but now it’s obviously ‘shou’, and there’s no momentum.”

"It is not easy for a brand to grow up. Although the company's production and operation is still going on for more than two years, in the fierce market competition, the current state has already caused 'Huishan' to lose a lot." The reporter said: "The scale of debt is large, the composition of assets is complex, the composition of creditors is diverse, and the interests of all parties are different. The reorganization of Huishan Dairy is destined to be a difficult problem. It is the interests of all parties to solve problems at an early date. The greatest protection."

“A company that looks good has a problem when it comes to the problem.” Some people living near the Huishan Building mentioned the situation when the Huishan crisis broke out. “At the time, this (Huishan Building) was downstairs, except The debt is the reporter. At night, there are people who are obsessed. After the crisis broke out, creditors continued to apply for bankruptcy and reorganization of Huishan’s company, and the court ruled that a total of 83 Chinese subsidiaries were taken. Substantial merger and reorganization methods are heard.

The "Securities Daily" reporter learned that since some creditors believe that the merger will reduce the settlement rate, they did not agree to the merger and reorganization. However, the court finally ruled that the substantive merger and reorganization can cause the debts and debts of the members of the related enterprises to be eliminated, which will eliminate the time, cost and social cost of cleaning up the assets and liabilities of different companies, and also help the administrator. As a whole, it arranges asset investigation, claims reporting, audit evaluation, etc., to improve the trial efficiency of reorganization cases, and to protect the interests of creditors from fair settlement.

"After the reorganization of the draft, it will require the review and approval of the relevant creditors. It will be a further game process. In the end, it will require a court ruling. If the reorganization fails and eventually goes bankrupt, that is the end of the total loss." Said, "Successful completion of reorganization is the best way out, time is tight."

(Article source: Securities Daily)

                (Editor: DF392)

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