Yiwu Municipal People's Court formally accepted the bankruptcy reorganization of five companies including Sanding Holdings The total amount of liabilities is expected to exceed 28 billion

On May 24, the economic observer network reporter Cai Yuekun learned from the bankruptcy reorganization administrator of Sanding Holding Group Co., Ltd. (hereinafter referred to as "Sanding Holdings") that the Yiwu Municipal People's Court formally accepted the bankruptcy reorganization case of sanding holdings and five other companies.

It is reported that on May 20, the bankruptcy reorganization administrator of Sanding Holdings sent an email to the creditors stating that the Yiwu Municipal People's Court, based on the applications of Sanding Holdings, Zhejiang Sanding Weaving Co., Ltd., Yiwu Huanding Webbing Co., Ltd., Yiwu Global Ribbon Co., Ltd., and Jinhua Jinding Webbing Co., Ltd., ruled to accept the bankruptcy reorganization case of the above five companies on April 26, 2021 and May 19, 2021, respectively, and designated Zhejiang Jingheng Law Firm and Ningbo Kexin Accounting Firm Co., Ltd. as joint managers.

Regarding the total liabilities of five companies such as Sanding Holdings, the above-mentioned manager told reporters that according to the previous pre-restructuring stage assessment, the overall five companies under the combined caliber exceeded 28 billion yuan. However, the administrator also stated that this data could not be accurate and that the meeting of creditors would ultimately prevail.

On May 24, a creditor of Sanding Holdings told reporters that Sanding Holdings had previously passed the pre-declaration of creditor's rights. According to the reporter's understanding, the Yiwu Municipal People's Court separately registered the pre-litigation dispute of five companies including Sanding Holdings on January 11, 2021.

In addition, the content of the email sent by the bankruptcy reorganization administrator of Sanding Holdings to the creditors also stated that the declaration period for the claims of each of the above reorganization cases was closed on June 30, 2021. Creditors who have already filed during the pre-reorganization phase do not need to make duplicate declarations. According to the second paragraph of Article 46 of the Enterprise Bankruptcy Law of the People's Republic of China, claims with interest shall cease to accrue interest from the time of acceptance of the bankruptcy application. Accordingly, interest claims declared during the pre-reorganization period will be calculated until the day before the reorganization case is accepted. The administrator will adjust the amount of the interest claim according to the calculation method of interest confirmed by the review, and notify the relevant creditors to make a change declaration. The first creditors' meeting will be held on July 15, 2021 at 9:30 a.m.

Looking back at September 6, 2019, the first "17 Sanding 01" corporate bond under Sanding Holdings could not be redeemed on time, and debt problems occurred. At that time, Sanding Holdings said that due to multiple factors such as macro leverage reduction, bank credit contraction, and financing difficulties of private enterprises, the company's liquidity problems occurred, resulting in bond defaults.

On September 11, 2019, the actual controller of Sanding Holdings held a communication meeting for bondholders and said that it was actively resolving the bond issue and putting the protection of the vital interests of creditors in the first place. But creditors did not get a clear solution.

It is understood that Sanding Holdings is a large group enterprise mainly based on nylon, webbing and other entities, while covering finance, cross-border trade, tourism and other industries, and its holding listed company Yiwu Huading Nylon Co., Ltd. (hereinafter referred to as: ST Huading, 601113.SH). At present, ST Huading's stock price is 4.26 yuan / share, and the total market value is only 4.9 billion yuan. In addition, according to the reporter's inquiry from Qixinbao, Sanding Holdings is currently funded by Ding Zhimin, Ding Ermin and Ding Junmin in monetary funds, and the shareholding ratios are 34.00%, 33.00% and 33.00% respectively. Ding Zhimin is the actual controller of the company.

Regarding the repayment rate of the later bankruptcy reorganization, on May 24, the above-mentioned bankruptcy reorganization administrator of Sanding Holdings told reporters that there is no asset assessment at present, and it is not clear.

Regarding bankruptcy reorganization, Everbright Securities Research Report previously said that the most ideal state is that the debtor can restore the operating ability and solvency of the enterprise. At the same time, we will seek fair and timely ways to liquidate creditors. However, in practice, it also faces a series of problems, including the high uncertainty of the bankruptcy reorganization progress of the enterprise, the uncertainty of whether the enterprise can restore the sustained hematopoietic capacity; in addition, after the order of repayment of financial claims is relatively high, the repayment rate usually lacks a clear guarantee standard, and it is difficult to reach a consensus plan on the imbalance of interests among creditors. Even if the parties agree to approve the bankruptcy reorganization, there is still great uncertainty about the actual repayment of the future.

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