On November 16th, Brilliance Automobile Group Holding Co., Ltd. (hereinafter referred to as "Brilliance Group") announced that at present, Brilliance Group has constituted a total of 6.5 billion yuan in debt default and 144 million yuan in overdue interest. Due to the shortage of enterprise funds, the approval of continuing credit extension was not completed, which made it impossible to repay.
The announcement shows that this debt default of Brilliance Group has an impact on the production and operation of the headquarters of Brilliance Group, which leads to the deterioration of the financial situation and greatly affects the solvency.
Brilliance Group said that the disclosure of this debt default has not triggered other debt prepayment clauses at present. In addition, the Group is actively negotiating with relevant creditors, and at the same time, increasing fund raising efforts, speeding up the work related to clearing debts and revitalizing assets, and striving to properly resolve debts.
At present, Brilliance Group has a huge debt of over 1 billion. Brilliance Group's semi-annual bond report in 22 shows that the total debt of the group is 132.844 billion yuan, and after deducting goodwill and intangible assets, the asset-liability ratio is 71.4%. The balance of cash and cash equivalents at the end of the period was 32.677 billion yuan. Wind data shows that the debt ratio of domestic auto companies is mostly below 6%.
according to the information from Sky Eye, the shareholders of Brilliance Group are the State-owned Assets Supervision and Administration Commission of Liaoning Provincial Government and the Social Security Fund Council of Liaoning Province (the provincial industrial (entrepreneurial) investment guidance fund management center), which hold 8% and 2% respectively. According to the bond rating report issued by Oriental Jincheng, as of the end of 219, Brilliance Group had 34 first-and second-tier subsidiaries, including four listed companies, namely Brilliance China (1114.HK), Jinbei Automobile Co., Ltd. (Jinbei Automobile, 669), Shanghai Shenhua Holdings Co., Ltd. (Shenhua Holdings, 6653) and Xinchen China Power Holdings Co., Ltd.
on November 13th, the case number (22) Liao 1 Po Shen No.27 published by the National Enterprise Bankruptcy Reorganization Information Network showed that Gezhi Automotive Technology Co., Ltd. applied to Shenyang Intermediate People's Court of Liaoning Province for bankruptcy reorganization of Brilliance Group.
As Brilliance Group was filed for bankruptcy and reorganization, Shenhua Holdings and Jinbei Automobile, subsidiaries of Brilliance Group, both issued suggestive announcements on the evening of November 15th.
Shenhua Holdings said that if Brilliance Group enters the reorganization process, it may have a certain impact on the company's annual performance and may have a certain impact on the company's shareholding structure. Jinbei Automobile said that if Brilliance Group goes bankrupt and reorganizes, the company may make a large provision for bad debts; In addition, the balance of the guarantee provided by the company to Brilliance Group and its related parties is 53 million yuan. If it goes bankrupt and reorganizes, there is uncertainty whether the relevant guarantee can be successfully lifted.
However, both Shenhua Holdings and Jinbei Automobile said that the company has independent and complete business and independent operation ability, and is independent from the controlling shareholder and its related parties in business, personnel, assets, institutions and finance. The reorganization of the controlling shareholder will not affect the daily production and operation of the company. As of the disclosure date of this announcement, the production and operation of the company are normal.