On October 9, the Chongqing Bankruptcy Court, managed by the Fifth Intermediate People's Court of Chongqing Municipality, announced that in order to properly resolve the debt problems of 13 enterprises of the Loncin family, maximize the value of enterprises, promote the development of regional industries, promote the success of reorganization, and safeguard the legitimate rights and interests of all creditors, it is now openly recruiting strategic investors.
Pre-reorganization has been filed into five major sections
According to reports, on September 30, 2021, the Fifth Intermediate People's Court of Chongqing Municipality named Loncin Group Co., Ltd., Loncin Holdings Co., Ltd., Yushang Investment Group Co., Ltd., Chongqing Lianen Industrial Co., Ltd., Chongqing Yuhan Real Estate Development Co., Ltd., Chongqing Yushang Industrial Investment Co., Ltd., Chongqing Yingchuan Industrial Co., Ltd., Chongqing Loncin Mining Investment Co., Ltd., Chongqing Loncin Investment Co., Ltd., Chongqing Yushang Renewable Resources Development Co., Ltd., Chongqing Changjiang Financial Holdings Group Co., Ltd., A total of 13 enterprises (hereinafter referred to as Loncin's 13 enterprises) of Weinan Hongjing Trading Co., Ltd. and Chongqing Longheng Hotel Co., Ltd. meet the conditions for pre-reorganization, and the pre-reorganization of 13 enterprises of the Loncin department and the pre-reorganization auxiliary institutions hired are recorded and registered.
Loncin is a group of 13 companies including Loncin Group Co., Ltd. and 12 companies directly or indirectly controlled. Loncin 13 enterprises are a comprehensive and diversified group integrating industrial manufacturing, environmental protection and renewable resource utilization, financial investment and other main businesses, and its assets are mainly reflected in the operating sector equity held or participated in by Loncin 13 enterprises.
(1) Industrial manufacturing sector
The main operating entity of the industrial manufacturing sector is Loncin General Dynamics Co., Ltd. (603766. SH), is a research and development, production and sales of motorcycles and engines, general power machinery enterprises, for the motorcycle industry leading enterprises, has formed a motorcycle and engine, general machinery industry cluster.
(2) Renewable resources sector
The main operator of the renewable resources sector is Qihe Environmental Protection Group Co., Ltd. (00976. HK), is one of the world's largest listed companies for scrap metal recycling. The company has a wide range of businesses, covering ferrous metals, non-ferrous scrap, end-of-life automobiles, recycling of e-waste and recycled aluminum ingot manufacturing, covering Asia, Europe and North America.
(3) Metal products plate
The main body of operation of the metal products sector is Shanghai Fenghua (Group) Co., Ltd. (600615. SH), the main metal material products processing and manufacturing, including magnesium alloys, aluminum alloy products and so on.
(4) Financial services sector
The financial services sector mainly includes Chongqing Rural Commercial Bank Co., Ltd. (601077. SH) and Hanhua Financial Holdings Co., Ltd. (3903.HK).
(5) Other plates
Other sectors mainly cover pharmaceutical, hotel, mining, real estate and other sectors. The main body of pharmaceutical business operation is Jilin Beisha Pharmaceutical Co., Ltd., the company's main products are vitamin E powder, E oil, folic acid, etc., of which vitamin E powder production is leading in the world; the main body of hotel business operation is Chongqing Longheng Hotel Co., Ltd., and the Chongqing Yushang International Hotel (formerly known as Chongqing Jinke Hotel Co., Ltd.) operated by it is a certified five-star hotel with high popularity in Chongqing; the main operating body of the mining sector is Tongzi County Tongxin Coal Industry Co., Ltd. located in Zunyi City, Guizhou Province The main operating entity of the real estate sector is Chongqing Yuhan Real Estate Development Co., Ltd.
Priority will be given to undertaking strategic investors as a whole
According to reports, the purpose and scope of the recruitment of strategic investors is to use the advantages of strategic investors in industry, finance and other aspects, on the basis of the investment plan submitted by strategic investors to form a restructuring agreement, and to coordinate and promote and complete the pre-reorganization of 13 enterprises of the Loncin department.
Strategic investors provide financial support to properly solve the debt problems of 13 Loncin enterprises, and enhance the value of core assets of 13 Loncin enterprises, improve the fundamentals of enterprise operations, and achieve industrial transformation and upgrading; build a company with reasonable equity structure, perfect governance structure, excellent asset quality, sustained profitability and strong growth vitality, and protect the legitimate rights and interests of creditors, employees, shareholders and other relevant parties in accordance with the law.
The recruitment is guided by supporting and promoting the overall development of Loncin Group's industries, taking into account the characteristics of each industrial sector, and using the advantages of industrial synergy to enhance industrial value. Therefore, this recruitment gives priority to the overall undertaking of strategic investors. At the same time, industrial investors who have investment intentions in separate industrial sectors are accepted to participate in restructuring investment.
Investor Requirements:
(1) The strategic investor shall be an enterprise legal person or unincorporated organization established in accordance with law and effectively existing, with a high sense of social responsibility and good commercial reputation, with no major illegal conduct or suspected major illegal conduct in the past three years, and has not been included in the list of judgment defaulters by the people's court.
(2) The strategic investor is not limited to the industry, and should have the operation and management capabilities suitable for the business to be invested. Experience in operation and management of related industries or mergers and acquisitions integration shall be preferred under the same conditions.
(3) The strategic investor shall have sufficient financial strength to carry out the restructuring investment and be able to issue the corresponding credit certificate or other proof of performance ability.
(4) If laws, regulations and regulatory policies have relevant provisions on the qualifications of the investor, the strategic investor shall ensure that it meets such requirements.
(5) Two or more strategic investors may form a consortium to participate in this recruitment and clarify the leader. The leader of the consortium shall meet all the conditions in items (a) to (iv) above, and the other members of the consortium shall meet the requirements of items (a) and (iv) above. Once the leader is confirmed, it cannot be replaced in principle. If the leader fails to pass the qualification review or withdraws from this recruitment, it is deemed that the consortium has not passed the qualification review or withdrawn from this recruitment.
The foregoing conditions describe only the minimum restrictive conditions of this recruitment and are not a commitment that investors who meet such conditions will necessarily be determined as reorganization investors.
Registration is required by November 15, 2021
According to reports, the registration process is as follows:
1. Registration time: The strategic investor should send or submit a copy of the paper registration materials (see attachment for details) to the pre-reorganization auxiliary institution by mail (mailing address and registration address) or on-site delivery before 17:00 on November 15, 2021 (Beijing time), and send the electronic version of the registration materials to the mailbox of the pre-reorganization auxiliary institution.
2. Registration address: 20th Floor, Loncin International Office Building, No. 5 Shipingqiao Heng Street, Jiulongpo District, Chongqing.
Contact: 17744496009 (Xie Cheng), 13121365971 (Wu Wenbin)
Email: [email protected]
3. Qualification review: After the strategic investor submits the complete application materials, the pre-reorganization auxiliary institution shall conduct a preliminary qualification review of the qualification conditions such as the main qualification, financial strength and ability of the strategic investor, and notify the strategic investor in writing of the review results. If the strategic investor passes the qualification review, he will notify the deposit payment time and account number in writing, and carry out due diligence after paying the deposit.
4. Security deposit: For those who intend to participate in the overall restructuring of Loncin's 13 enterprises, the security deposit is 30 million yuan; if the company intends to participate in the restructuring of 13 enterprises in the Loncin system, the security deposit is 20 million yuan.
Liu Yong, chief reporter of Upstream News, intern Lai Yaxin
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