Yuan Yafei and Sanpower Group are about to get out of the debt crisis.
On November 30, the reporter was informed that in the afternoon, the Fourth Plenary Meeting of the Sanpower Group’s Financial Debt Committee voted and approved the “Sanpower Group Co., Ltd. Restructuring Plan “.
Since the Jiangsu Provincial Government took the lead in establishing the Sanpower Group Financial Debt Committee on September 5, 2018, the Sanpower Group’s agreement restructuring plan that has attracted much attention has lasted three and a half years It was finally officially approved.
Sanpower Group is a large private enterprise group headquartered in Nanjing, Jiangsu. Its main business is consumption and health. Now it owns ST Hongtu (600122.SH). , Nanjing Xinbai (600682.SH) two A-share listed companies.
In June 2018, Sanpower Group fell into a liquidity crisis. The relevant departments of the China Banking and Insurance Regulatory Commission, the Jiangsu Provincial Government and the Nanjing Municipal Government successively stepped in to resolve the debt risk of Sanpower Group. As of November 2021, the total financial interest-bearing liabilities that the group needs to resolve under the restructuring plan are 62.449 billion yuan.
In response to the “Sanpower Group Co., Ltd. Restructuring Plan” submitted by Sanpower Group, Sanpower Group Financial Creditors voted by mail. The voting results showed that Sanpower Group finally won the support of 89.91% of the holders of the debt amount.
According to Article 10 of the “Working Rules for Creditor Committees of Financial Institutions” issued by the four ministries and commissions including the China Banking and Insurance Regulatory Commission and the Development and Reform Commission in December 2020, the Decisions on major matters such as the financial debt restructuring plan shall, in principle, be approved by member institutions that account for more than two-thirds of the total amount of financial claims and more than half of all member institutions.
Now that the pass rate is close to 90%, the support for the “Sanpower Group Co., Ltd. Restructuring Plan” far exceeds the official number.
Do not adjust the principal of the creditor’s rights, and introduce strategic investment
On the afternoon of November 30th, Sanpower Group founder Yuan Yafei issued a thank-you letter “89.91% pass through! Thanks! “Yuan Yafei” reflects on the previous business operations: “We were blindly diversified and expanded by our achievements. If it were not for the central government’s timely proposal to deepen supply-side structural reforms, and vigorously promote ‘deleveraging’, We are likely to sink deeper and deeper on the path of self-inflation, and lose the chance of reorganization and rebirth. “
According to reports, the Sanpower Group’s debt restructuring adopts an “agreement reorganization” method. It does not go bankrupt, does not evade debts, does not discount or derogate, and is considering the Sanpower Group as a whole. On the basis of stock resources, incremental resources and future development, combined with the characteristics of debt structure and risk exposure characteristics, a “guaranteed capital, guaranteed interest, and postponement” plan has been formed.
After the agreement reorganization plan is officially passed, the legal subject of Sanpower Group will remain unchanged, and it will remain a limited liability company rooted in Nanjing, and the debt risk mitigation work is about to enter the substantive stage of operation.According to the above restructuring plan, Sanpower Group will not adjust the principal of the claims, and all the principal of the claims will be included in the Main business assets. All proceeds from the disposal of these assets or asset value will be used to pay off debts and achieve debt reduction. At the same time, strong strategic investors will be introduced to actively revitalize the high-quality assets of the main business, among which strategic investment is used as a financial relief method. Provide corresponding relief funds, and the company will gradually complete various debt repayment tasks in accordance with the restructuring plan.
A relevant person from the creditor institution who did not want to be named said that this time the Sanpower The result of reorganization through agreement with high votes is expected. I hope it can proceed smoothly. The current plan can meet the different needs of various creditors, is more beneficial to creditors, and can better protect the interests of creditors.
An executive of Sanpower Group said in an interview with reporters that after the outbreak of Sanpower’s debt crisis, governments at all levels and relevant departments in Jiangsu Province and Nanjing City have been actively coordinating the reorganization of the agreement. The plan can be officially passed, “Thanks to the strong support of governments at all levels, the leadership of the Debt Committee Chairperson and the Vice Chairpersons of the Debt Committee, the full cooperation of professional intermediaries, and the support of Sanpower’s creditors. Fully understand and support. ”
Focus on the main business of medical and health in the future
In 2018, the news reported that after the liquidity crisis, Sanpower Group began a “slimming” plan. At the same time, it clearly focused on the business strategy of biomedical health, and completed the divestiture of the House of Fraser in the UK and the Brookstone Xinqile chain in the US through bankruptcy auctions, reducing continuous blood loss and greatly reducing debt.
At the same time, Sanpower Group is also actively promoting management and weight reduction. The headquarter staff of the group has been streamlined by 4/5, and the total number of global employees has been reduced from about 100,000 to more than 40,000 at present. .
In the thank you letter on the 30th, Yuan Yafei revealed the details of the preparations for the agreement reorganization: under the auspices of the two chairman offices of China CITIC Bank and Bank of Nanjing, 21 chairman units A special person is appointed to form a working group, and the permanent Sanpower will supervise and guide the work. The Debt Committee hired a team of more than 100 professionals from a third-party professional organization to conduct due diligence for more than three months. The results showed that Sanpower’s underlying assets were relatively complete and the prospects for the layout of the industry were good. This was the fundamental prerequisite for the agreement reorganization. The Debt Committee strictly follows the four ministries’ “Financial Debt Committee Work Regulations” and the requirements of the China Banking and Insurance Regulatory Commission, taking into account the demands of all parties on the basis of protecting the interests of all creditors, and carrying out work in a fair and impartial manner, which is an important basis for the agreement reorganization.
The news reporter learned from another senior executive of Sanpower Group that after the agreement reorganization plan is passed, Sanpower Group will introduce war investment bailout funds to gradually repair assets. On the one hand, it disposes of non-main business assets to pay off debts. On the other hand, it focuses on the main business, vigorously develops the biomedical and health care business, and continues to carry out the “second entrepreneurship” to revitalize its own operating cash flow. The previous liquidity exhaustion caused by the restriction of a large number of assets will be resolved, and related assets will be gradually repaired and disposed of and normal business operations will be resumed. While the company will return to its normal development track, it will ensure the stability of debt repayment assets and cash flow.
In the future, Sanpower will focus on the main business of medical and health, integrate and strengthen the cord blood bank, cellular immunotherapy, home care and hospitals and other businesses, and will also promote existing medical and health care in a timely manner The main business develops in-depth, further enhances the depth of business and the degree of integration and coordination, further improves the overall operating efficiency, and on this basis, further develops new business growth points such as health care real estate.