"Loss King" *ST Saline Lake'S Self Rescue Way: Stripping Assets "Good Or Bad Separation" Bankruptcy Reorganization To Avoid Delisting

*ST 000792.SZ, which has entered the restructuring process due to a debt of 400 or more, is once again stunned by the market. (000792.SZ)

On the evening of January 11th, *ST Saline Lake released its 2019 earnings forecast. The net loss of net profit for the whole year is expected to be -432 to -472 billion yuan. This data refreshed market records and is likely to become the most serious loss in the history of A shares.

*ST Saline Lake explained that the main reason for the loss of performance was the loss expected from the disposal of assets in the process of bankruptcy reorganization. The expected impact on profits was about 41 billion 735 million yuan. This matter is a non recurring gain or loss.

In fact, in September 30th last year, the intermediate people's Court of Xining, Qinghai province decided to accept the case of *ST bankruptcy reorganization of Saline Lake. At present, *ST Saline Lake has disclosed the draft reorganization plan. The latest development is that creditors will vote on the reorganization plan in January 17th.

"What the company is doing now is to ensure the interests of creditors. It is good for everyone to ensure that the company can survive and maintain good operation. " In January 13th, a *ST Saline Lake official told the twenty-first Century business reporter.

Rezigzag Road

In fact, the reason for *ST's Saline Lake restructuring is only about $4 million 390 thousand in arrears. Compared with the *ST Saline Lake, which still had more than 700 million yuan of funds, it did not choose to pay off debts, but rather bankruptcy reorganization.

So in the whole process of reorganization, doubts about *ST Saline Lake's evasion of debts continued.

In the subsequent instructions, *ST Saline Lake pointed out that instead of paying the bill, it applied for bankruptcy because the account was cash, but because of the overdue debts and judicial freeze, Saline Lake shares were not entitled to free use. At the same time, due to the freezing of bank accounts, inability to produce and operate normally, no new financing and other reasons, there has been no sustained and stable cash flow.

As for the bankruptcy reorganization that has not yet reached the level of insolvency, it is because the insolvency is not the sole condition for the court to rule the enterprise into the reorganization process. The court decided to restructure on the grounds of "unable to repay the debts due to maturity and the apparent lack of solvency".

In the market controversy, the draft of *ST Saline Lake's reorganization has come to the ground.

The plan pointed out that the total share capital of Saline Lake joint stock company is based on 2 billion 786 million shares, and the capital reserve will be converted into capital stock by the ratio of 10 shares to 9.5 shares, which will add 2 billion 647 million shares to the total. After the increase, the total share capital of Saline Lake stock company will increase to 5 billion 433 million shares.

This part of the proceeds will not be allocated to the original shareholders. About 2 billion 576 million shares will be converted to equities to repay debts to the creditors. The remaining 70 million 751 thousand and 800 shares will be transferred to the transferee with conditional compensation, and the transferee consideration will be used to pay the reorganization fees and repay some debts.

According to a mechanism disclosed by the government, the creditor's rights in the reorganization plan are creditor's rights. The creditor's share is below 500 thousand yuan (including 500 thousand yuan). Each part of the creditor's rights is paid by the Saline Lake shares in the form of cash in accordance with the law in the execution period of the reorganization plan.

And for more than 500 thousand yuan, non bank creditor's rights can be selected to stay in debt or to repay by shares. There are four ways to retain debts, which are to retain the amount of claims in different ratios and to repay them within a certain period of time. The amount of debt payable to stocks is converted to stocks according to the 13.1 yuan / share debt price.

However, some agencies are still not optimistic. "The reorganization plan has written down debt, infringed on creditors' interests, and creditors' claims have been discounted, but thickened the interests of shareholders." A private equity fund manager in Beijing said.

According to the disclosure, as at 6 p.m. on January 8, 2020, a total of 1111 creditors reported their claims to the manager, and the declared amount was about 48 billion 588 million yuan. As of the same date, the initial amount of the claims determined by the administrator was about 45 billion 17 million yuan.

In January 17th, the Qinghai Saline Lake industrial Limited by Share Ltd reorganization plan (Draft), which is to be voted by the second creditors' meeting of the Saline Lake stock reorganization case, still needs attention.

"If creditors have more objections, they will definitely affect the reorganization process of the company. The creditors hope that the one hundred percent amount will not be owed or paid in full, but the situation in Saline Lake should also be considered. At least, the company is ensuring the interests of creditors, and increasing equity is diluting the interests of existing shareholders. Now the practice is to protect the interests of creditors. " The aforementioned *ST Saline Lake people believe.

In his view, "Saline Lake has gone to this stage with problems like this, but there are always problems to be solved. Bankruptcy liquidation is an irresponsible practice. To ensure that the company survives, it is good for everyone to do it. As a local state-owned enterprise, the importance of Saline Lake in potash fertilizer industry still exists.

Or will be suspended from listing

After the 2019 loss, the crisis facing *ST Saline Lake was also suspended.

Prior to that, *ST Saline Lake in 2017, 2018 in two consecutive accounting year audited net profit is negative, stock has been implemented since April 30, 2019, the delisting risk warning.

If the company's audited net profit in 2019 is still negative, according to the relevant regulations, the Shenzhen stock exchange will suspend trading of the company's stock and its derivatives since the date of the company's disclosure of the annual report and make a decision whether to suspend the listing of the company's stock tickets within fifteen Trading days after the suspension.

According to the disclosure, *ST Saline Lake's losses in 2019 still come from Saline Lake magnesium industry and Haina chemical and chemical branch.

Saline Lake magnesium industry lost about 3 billion 100 million yuan from 1 to 10 in 2019. Haina chemical industry lost about 800 million yuan from 1 to October in 2019. Due to the supply of natural gas, the chemical company lost about 862 million yuan in 2019.

The main production of potassium chloride and the production of blue lithium lithium carbonate are stable.

Among them, the output of potassium chloride increased significantly compared with the same period in 2018, the output of potassium chloride was 5 million 630 thousand tons, the output of 4 million 830 thousand tons in 2018, the sales volume was 4 million 530 thousand tons during the reporting period, and the sales volume was 4 million 688 thousand tons in 2018, and the sales price increased year after year. The output of lithium carbonate is 11 thousand and 300 tons, and its output is 11 thousand tons in 2018. The sales volume of 11 thousand and 300 tons is equal to that of 2018.

In fact, the stripping of the huge losses of Saline Lake magnesium industry, Haina chemical and chemical branch company is also an important part of *ST Saline Lake bankruptcy reorganization.

But the process of dealing with it has been discontinuous. In the nearly 2 months of public auction since November last year, this asset pack was auctioned six times.

According to the previous agreement, if the manager continues to take a public auction or transfer agreement to dispose of the Saline Lake stock assets, and no other main body is willing to participate in the sixth auction or the assignee of the Saline Lake stock assets at the price of more than 3 billion yuan, the Qinghai Hai Huixin asset Management Co., Ltd. (hereinafter referred to as "Huixin asset management") will be transfered to the Saline Lake stock asset package at the price of 3 billion yuan.

Industrial and commercial information shows that the controlling shareholder of Huixin asset management is Haixi state owned capital investment operation (Group) Limited company, which is a state-owned assets supervision and Administration Commission of Haixi Mongolian Autonomous Prefecture.

"At least now, after the company divestitures the bad assets, the profitability of the listed companies will be stronger than before. At present, the market will be suspended in 2020, but the company's potash business is generating revenue every year. After the loss of these companies is stripped, they will not have so much debt. At the moment, it will not go to the stage of delisting. " *ST Saline Lake people said.

After the *ST Saline Lake released its performance forecast, in January 13th, the Shenzhen Stock Exchange issued a letter of concern, requiring the company to verify related matters.

This includes the preliminary calculation and estimation of the estimated loss of assets disposal of about 41 billion 735 million yuan, and demonstrates the necessity and rationality of this asset disposal leading to the impairment of large assets. It shows that the other 8 shareholders advocate that the company buy back the shares of Saline Lake magnesium industry and the basis for the company to buy back Saline Lake magnesium shares to the state, and quantify the analysis and combine the company's potassium chloride and lithium carbonate business performance to demonstrate whether the company has sustainable operation and profitability after the disposal of the assets.