On March 12, "Coating" reported the progress of the bankruptcy reorganization case of Crocodile Paint (Shanghai) Co., Ltd. (hereinafter referred to as "Crocodile Paint"), and combined with rumors, it is expected to complete all the processes within the year and achieve nirvana rebirth (see: "Crocodile Paint Bankruptcy Reorganization Tracking: or "Reverse Rescue" by Dealers for 35 million).
Crocodile paint in the midst of bankruptcy and reorganization
On April 1, the bankruptcy reorganization case was further advanced: the administrator of Crocodile Paint issued a notice that the second creditors' meeting was scheduled to be held in writing on April 16, 2024.
According to this notice, the second creditors' meeting will deliberate and vote on the Reorganization Plan (Draft) of Crocodile Paint (Shanghai) Co., Ltd., as well as the Reorganization Plan for Crocodile Paint (Shanghai) Co., Ltd. As can be seen from the agenda of the meeting:
1. The reorganization plan (draft) of Crocodile Paint (Shanghai) Co., Ltd. has been formulated, and everything is continuing to advance in a positive direction;
2. Crocodile Paint will change the price of foreign investment assets and auction the part of the assets (provided that the price change plan is approved).
The price change scheme here is a new knowledge point in bankruptcy reorganization cases, and there is no precedent in the coating industry. According to the relevant practice of bankruptcy reorganization of enterprises in other industries, the reporter of "Paint Classic" roughly sorted out the formulation of the price change plan and its content direction - in order to smoothly promote the reorganization of bankrupt enterprises, maximize the overall property value of enterprises, and effectively protect the legitimate rights and interests of all creditors, the administrator formulates a price change plan in accordance with the "Enterprise Bankruptcy Law of the People's Republic of China" (hereinafter referred to as the "Enterprise Bankruptcy Law") and relevant laws and regulations, judicial interpretations, etc., combined with the actual situation of the property of the bankrupt enterprise, and submits it to the creditors' meeting for deliberation. Vote.
Data picture: The scene of the first creditors' meeting of the pre-reorganization of Crocodile Paint (Shanghai) Co., Ltd. (Photo source: Yingke New Vision)
In the bankruptcy reorganization case of Crocodile Paint, the content of its price change plan pointed to foreign investment assets. According to the information publicly displayed by Tianyancha, there are 8 foreign investment assets of Crocodile Paint, including 40% equity of Yantai Tongcheng Crocodile Architectural Decoration Co., Ltd., 25% equity of Shandong Crocodile Paint New Material Co., Ltd., 20% equity of Crocodile New Material Technology (Beijing) Co., Ltd., 5% equity of Crocodile Paint Technology (Shanghai) Co., Ltd., 5% equity of Crocodile Paint (Chengdu) Co., Ltd., etc. See the figure below for details.
This also means that once the "Crocodile Paint (Shanghai) Co., Ltd. Reorganization Case Foreign Investment Conversion Plan" is approved at the second creditors' meeting held on April 16, the above-mentioned eight foreign investment assets (subject to the information listed in the conversion plan) will be auctioned, so that the subject of bankruptcy reorganization is more independent and can travel lightly, so as to make the implementation of the final reorganization plan more operable.
Of course, there is a possibility that the asset auction may fail, so the implementation of the price change plan in a reorganization case is often a process of multiple adjustments, and it is often agreed that there is no limit to the number of adjustments until the relevant assets are cleared. This may become an uncertain factor in the process of advancing the crocodile paint reorganization case, which will directly affect the progress of the reorganization.
This is also related to the willingness of prospective investors to invest. As stated in the "Crocodile Paint Bankruptcy Reorganization Tracking: or "Reverse Rescue" by Dealers with 35 Million", the intended investors of Crocodile Paint are rumored to be its distributors in the southwest region, and the foreign investment assets mentioned above that Crocodile Paint needs to be "cleared" are highly related to its main business (paint production enterprises, decoration companies and regional distributors), so it is not excluded that the intended investors may take them all. If so, it will mean that the "financier" behind the scenes in this bankruptcy reorganization case has surfaced, and it is conducive to accelerating the bankruptcy reorganization progress of Crocodile Paint.
In any case, compared with another high-profile but suspected bankruptcy reorganization case in the paint industry, the reorganization process of Crocodile Paint has been quite smooth (which is also related to its lighter claims and clearer creditor relationships), so that creditors can see the hope of "victory", and provide a realistic case for the bankruptcy reorganization practice of the paint industry.
On April 16, with the convening of the second creditors' meeting of Crocodile Paint, we may be able to obtain more information and continue to follow up and report.