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?
Xin Huaxin filed for bankruptcy liquidation
Years ago, affected by the global financial crisis and Affected by problems such as bank loan collection, chemical fiber companies frequently appear in various negative information: suspension, bankruptcy, closure, restructuring… As China’s leading chemical fiber company, Huaxin Chemical Fiber Technology Group Co., Ltd. (hereinafter referred to as Lao Huaxin) due to investment failure, It also assumed guarantee responsibilities for affiliated companies, causing the capital chain to break, 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 bankruptcy liquidation of Lao Huaxin on the grounds that Lao Huaxin could not pay off its due debts and its assets were insufficient to pay off all debts or it clearly lacked solvency.
After investigation, due to the high degree of confusion between the old Huaxin and the new Huaxin in terms of actual controller, asset division, capital transactions, corporate employees, main business, etc., the Yuyao Court actively guided the new Huaxin to apply for bankruptcy. On May 21, 2018 On the same day, Xinhuaxin filed a bankruptcy application with Yuyao Court.
On May 28, 2018, the Yuyao Court ruled to accept the bankruptcy liquidation application of New Huaxin and merged the bankruptcy liquidation cases of New and Old Huaxin for trial.
From bankruptcy liquidation to bankruptcy reorganization
Due to the industrial policy and energy “dual control” restrictions in the park where the new and old Huaxin are located, if it passes bankruptcy liquidation The program simply realizes the assets of the company, and it is almost impossible for the asset bidder to re-establish the company with the original assets and continue to engage in the same business as Huaxin. This will eventually lead to a significant depreciation of the assets of the new and old Huaxin, and even the assets of the old and new Huaxin. Risks of difficulty in realizing cash and inability to repay debts.
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 main business profitability.
Both creditors and Huaxin, a solution such as bankruptcy and liquidation is unfavorable to all parties.
More importantly, during the bankruptcy liquidation period, Huaxin Company still had 1,143 registered employees, and the employee debt was as high as more than 30 million yuan. Once this debt cannot be paid off, it will affect the stability of the employee group. And 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 to merge and reorganize the new and old Huaxin based on the applications of the new and old Huaxin.
826 million yuan transaction! “Reorganization of investment rights” judicial online auction successful!
In July 2018, the Yuyao Court organized the first creditors meeting of the merger and reorganization of the new and old Huaxin to vote 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.
Picture Dawo Chemical Fiber General Manager Rong Weijun could not restrain his excitement and held up his business license Presented to the attendees
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 to communicate and explain to creditors who still have doubts one by one. law, send judicial suggestions, and constantly adjust reorganization ideas and improve reorganization plans.
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 regain continued operations and profitability with its own business. 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 on Taobao. The starting price was 400 million yuan bid by the intended restructuring investors. After 154 bids and 117 postponements, At that time, Ningbo Dawo Chemical Fiber Technology Co., Ltd. (hereinafter referred to as Dawo Chemical Fiber) finally won the restructuring investment rights of the 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 creditor’s rights allocated for the first time was 8%, which was 700% higher than the estimated repayment rate of the liquidation plan.
A few days ago, Yuyao Court has organized the new and old Huaxin to complete the transfer of reorganization assets. The buyer, Dawo Chemical Fiber, paid the full amount of 826 million yuan and received the assets for reorganization.
With the leadership of the Yuyao Municipal Party Committee and the support of the Yuyao Municipal Government, Yu…�After the court accepted the bankruptcy reorganization of the merger of the new and old Huaxin, it took the overall goal of “not to destroy, not to establish, and to destroy before establishing” as an important starting point, and to “jointly solve the problem with the government and the hospital” as an important starting point, to jointly study and understand the actual situation of the enterprise, and rely on the bankruptcy and reorganization system. , assess the situation, implement precise policies, work together to overcome difficulties, and achieve a win-win situation.
The reorganization plan maintains the main business and products of the enterprise, does not carry out asset replacement, and does not suspend or semi-stop production. It realizes the rebirth of the enterprise on the spot and makes active efforts to maintain production capacity, maintain stability, and promote development.
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