3 billion yuan in debt, 1,143 employees to be resettled… As one of the top 100 companies in Ningbo and a leading chemical fiber company in China. Huaxin Chemical Fiber Technology Group Co., Ltd. fell from the altar overnight due to investment mistakes. How will the company achieve nirvana and rebirth?
Unable to repay due debts, creditors filed for bankruptcy liquidation
In 2017, affected by the global financial crisis and bank repossession Affected by loan and other problems, chemical fiber companies frequently appear in various negative information: suspension of business, bankruptcy, closure, restructuring… As China’s leading chemical fiber company, Huaxin Chemical Fiber Technology Group Co., Ltd. (hereinafter referred to as Lao Huaxin) failed to invest and was Affiliated companies assumed guarantee responsibilities, and Lao Huaxin’s capital chain was broken, falling into a huge debt crisis and frequent lawsuits.
In January 2016, Lao Huaxin closed down. After that, Yuyao Xinhuaxin Fiber Sales Co., Ltd. (hereinafter referred to as Xinhuaxin) leased the old Huaxin factory and its fixed assets and continued to engage in chemical fiber operations.
In June 2017, the Yuyao Branch of Bank of Wenzhou Co., Ltd. applied to the Yuyao Court for relief against the elderly on the grounds that it could not pay off its due debts and its assets were insufficient to pay off all debts or it clearly lacked the ability to pay off debts. Huaxin went into bankruptcy liquidation.
After investigation, there was a high degree of confusion between the old Huaxin and the new Huaxin in terms of actual controllers, asset division, capital transactions, corporate employees, main business, etc. Therefore, the Yuyao Court in 2018 In May, it was ruled to accept the bankruptcy liquidation application of New Huaxin and merge the bankruptcy liquidation cases of New Huaxin and Old Huaxin for trial.
Employee placement, asset realization, court decision to reorganize
Due to the industrial policy and energy “dual control” restrictions in the park where the new and old Huaxin are located, if the company’s assets are simply liquidated through bankruptcy liquidation procedures, the asset bidder will re-establish the company with the original assets and continue to engage in related activities. It is almost impossible for Huaxin to have the same business, which will eventually lead to a significant depreciation of the assets of the new and old Huaxin, and there may even be a risk of difficulty in realizing the assets and being unable to be reimbursed.
As far as the company is concerned, Huaxin, as a former leading chemical fiber company, has high-quality chemical fiber business qualifications, holds a large amount of land, houses, production lines and other assets, and it still has strong The profitability of the main business.
Whether it is for creditors or Huaxin, a solution such as bankruptcy liquidation is unfavorable to all parties.
More importantly, during the bankruptcy and liquidation period, Huaxin Company still had 1,143 registered employees, and employee debts amounted to more than 30 million yuan. Once this debt cannot be paid off, it will affect the employees Stablize. For these employees, company bankruptcy and liquidation means losing their source of livelihood.
In order to solve this dilemma, with the support and coordination of the Yuyao Municipal Government, the Yuyao Court ruled in June 2018 based on the application of the new and old Huaxin Xin merged and reorganized.
826 million transactions! The first judicial auction of “Reorganization Investment Rights” was successful!
In July 2018, the Yuyao Court organized the merger and reorganization of the new and old Huaxin. A meeting of creditors voted on the draft bankruptcy reorganization plan of Huaxin. The property security claims group, tax claims group, and investor group all voted to pass the reorganization plan, but the general creditors’ rights group failed to vote to pass the reorganization plan.
In order to ensure that the bankruptcy reorganization plan can be passed smoothly, the judges of the bankruptcy trial team of Yuyao Court have devoted a lot of effort, communicating with creditors who still have doubts one by one, interpreting the law, and sending judicial notices. suggestions, and constantly adjust the reorganization ideas and improve the reorganization plan.
After repeated arguments between the Yuyao court and the bankruptcy administrator, the “auction reorganization investment rights” was finally innovatively proposed. By retaining all the effective operating assets of the company, the company can use its own business Regain going concern and profitability. This kind of auction of the restructuring investment rights of bankrupt enterprises through public auction is the first of its kind in Ningbo, and the huge amount is also rare in Zhejiang.
On November 4, 2019, the new and old Huaxin restructuring investment rights were put up for auction at the Judicial Online Auction, with the starting price of 400 million yuan bid by the intended restructuring investors. After 154 bids and 117 delays, Ningbo Dawo Chemical Fiber Technology Co., Ltd. (hereinafter referred to as Dawo Chemical Fiber) finally won the restructuring investment rights of New and Old Huaxin at a high price of 826 million yuan. It is reported that after the successful bankruptcy and reorganization of New and Old Huaxin, the repayment rate of ordinary claims distributed for the first time reached 8%, which is 700% higher than the estimated repayment rate of the liquidation plan.
A few days ago, the Yuyao Court organized the merger and reorganization assets transfer of the new and old Huaxin. The buyer, Dawo Chemical Fiber, paid a full payment of 826 million yuan and received the reorganization assets. </p
