The report published in CSJS is that Kehong, a subsidiary of China Metal (Bermuda) Co., Ltd. (hereinafter referred to as "China Metal"), suddenly declared bankruptcy.
-
"Meteor Falling" and "Sudden Death" of a listed steel enterprise.
I only like business that I can understand. This standard excludes 90% of enterprises …
654381In the early morning of October 9, the mist in late autumn has not yet dispersed, and many people have gathered outside Changshu Kehong Materials Co., Ltd. (hereinafter referred to as Kehong) in Changshu Economic Development Zone.
These people are engineering and equipment outsourcers in Kehong. In recent years, they have paid huge sums of money for a series of expansion projects of Kehong and its affiliated enterprises.
"Yesterday, I heard that Kehong and several other affiliated enterprises suddenly declared bankruptcy at the same time. I arrived immediately after I got the news, only to find that the main person in charge of the company was gone and the factory was taken over by the government. " Zhang Jian, a civil contractor in Nantong, said helplessly on the phone: "I have to put away my equipment and tools first, go back and prepare materials, and wait for the government to solve it."
Kehong is a subsidiary of China Metal (Bermuda) Co., Ltd. (hereinafter referred to as "China Metal"), which mainly produces high-tech galvanized steel plates and other steel products. Since its establishment at the end of 2002, the company's annual sales have been maintained at10 billion yuan, and it is a big profit and tax payer in Changshu, ranking 373rd in the "Top 500 Manufacturing Enterprises in China in 2008".
China Metal announced through the Singapore Stock Exchange on the 9th that due to the current economic crisis, the Group was unable to repay a working capital loan of about 706 million RMB, resulting in another loan with a value of about 2.03 billion RMB. In addition, the Group is facing another working capital loan with a value of 2.493 billion yuan that may expire, so it temporarily stops production in Jiangsu.
Li, a person in charge of the aftermath, told reporters that at present, the handling of the incident has been led by the government, and he will no longer speak to the media; Another left-behind person in Kehong said: In the global financial crisis, the bank urged Kehong to make some loans due, which led to the interruption of the company's cash flow, but the company was never insolvent.
According to informed sources, on the 9th, the decision-making level has appointed two responsible persons, including Zhang, to fly to Changshu to be fully responsible for handling the creditors of all parties and the aftermath. On June 5438+00, employees also received this month's salary.
As of press time, China Metal has suspended trading on the Singapore Stock Exchange, and the company has appointed Rajah and Tann as its legal advisers, and will appoint appropriate financial advisers to consult on the company's restructuring.
Yang Bing, information director of China Iron and Steel Resources Service Network, believes that after the rapid growth of domestic steel industry since 2003, the demand for steel in downstream industries such as textile, automobile manufacturing and household appliances shrank in 2008, and the steel industry quickly fell into a downturn. It is inevitable that an enterprise with high debt ratio expansion like Kehong will fall into a dilemma once there is a problem in the capital chain.
Kehong suddenly collapsed.
At noon on the 8th, Zhang Jian came to Kehong, a company founded in 2002 with nearly 3,000 employees. At this time, the company's gate was completely closed by roadblocks, and all people entering and leaving the factory had to show their certificates and register before they could enter the factory.
"No one has informed us of the closure of Kehong before, and even Kehong employees who often contact me don't know the news." Zhang Jian recalled: "It was only this morning that I heard that the governors of Taiwan Province Province in Kehong had disappeared, so I rushed to have a look. When I arrived, hundreds of people had gathered there, which was very chaotic. "
Because Kehong gives the impression that it has been operating well and the scale of the enterprise is huge, the outsourcers such as Zhang Jian and even Kehong's own employees are not sure of the truth of this news. People are worried and talking about it.
"Soon after, a local government official led the police to maintain order, and then the court posted a notice saying that the bank had preserved the assets, and then we confirmed that we were unemployed." The above-mentioned Kehong employees said gloomily: "They have put seals on all production workshops and key departments, even cars and computers."
The notice mentioned by Kehong employees is a civil ruling (2008 Chu Er Zi No.2008) issued by Changshu People's Court. 1704 and 1705). According to the ruling, according to the property preservation applications filed by Changshu Sub-branch of Shanghai Pudong Development Bank and Changshu Sub-branch of China Bank, the court decided to immediately freeze the deposit of RMB 27 1 10,000 in the bank account of Kehong or seal up or detain the financial equivalent, and the deposit time was 1.8.
According to the announcement issued by China Metal on the 9th, including Kehong, the loan balance that the group is unable to repay may be as high as 5.283 billion yuan, which does not include the engineering materials paid by outsourcers such as Zhang Jian. Judging from the 27 1 10,000 yuan of funds sealed in the current asset package, once Kehong goes bankrupt, the proportion of Zhang Jian and others will be very low.
In its statement, China Metal did not specifically disclose which banks participated in the loan. However, according to the company's annual reports in 2006 and 2007, the main lending banks include Citigroup, China Construction Bank and Commerzbank.
According to the above-mentioned internal staff of Kehong, since Kehong 1 was put into production and achieved good economic benefits, the top management of the company attached great importance to the development speed of the enterprise. In the past five years, as many as nine expansion projects have been launched, but only Kehong 1 Phase II and its brother company Sing Tao New Materials Co., Ltd. (hereinafter referred to as Sing Tao) are in normal production and operation, and other projects are still under construction. "In July, the company's top management negotiated new loans with foreign banks such as Citigroup and Standard Chartered, but it ended without results."
According to an insider, in fact, on the evening of 10/0/7, the senior officials of Taiwanese businessmen in Kehong told several mainland subordinates that due to the global financial crisis, the provincial government of Taiwan Province Province requested all Taiwan Province leaders to go back to the meeting immediately. "At that time, these subordinates were also informed that the company temporarily stopped production from June 9 10, and employees had a month off."
Since 10 is the payday in Kehong, some employees claim that they will hold a rally if they don't get paid, which makes the local government and Kehong executives very nervous. "On June 8th, 10, the government of Changshu Economic Development Zone called a meeting on behalf of the municipal government, stressing the need to maintain stability." The person in charge of Kehong said.
At the same time, the development zone government has begun to call local creditors to register their claims in Kehong, and informed all employees to wait for the government's solution at home.
According to a creditor, 10 On June 9, the creditor list was already one inch thick. "There are many names written on A4 paper, and each line is a creditor. Many of them contributed tens of millions, and some hundreds of thousands. The biggest debt I have ever seen is 42 million, and I heard that there are still 70 million. After tomorrow, foreign creditors will come one after another. "
Due to the rapid intervention of the government and the arrival of Zhang and other responsible persons, the mood of employees and creditors has calmed down. However, without the intervention of follow-up funds, it is difficult for Kehong to continue production, so it is very possible for the government to attract investment.
As a former official in Hong Wen said-"The company will resume production in a month at most, maybe only a week or two, and then the company's direction will be clear."
The official refused to explain whether the word "go" had a subtext. But whoever takes over will face a severe test of cash strength and market adaptability.
"On June 28th, Xu Lejiang, chairman of Baosteel, made clear instructions at the internal meeting of its subsidiary, Shaogang, to quickly clear the inventory and accumulate funds for the winter. A model like Kehong, which tries to maintain with high-debt rolling operation, will inevitably be eliminated in this reshuffle. " Yang Bing, information director of China Iron and Steel Resources Service Network, said.
The tragedy of the Great Leap Forward
For the Kehong crisis, Chairman She Chuntai is hard to blame.
According to public information, the registered capital of Kehong is US$ 2 1 billion, and the paid-in capital is US$ 0/0.3 billion. Its business scope includes the production and sale of galvanized stainless steel plates, color-coated stainless steel plates, new building wall materials and accessories.
It is understood that Shechun Taiyuan is the senior manager of Ye Hui Materials under Yilian Group, the second largest steel manufacturer in Taiwan Province Province. In 2002, he left Ye Hui Materials Company and started his own business. That year, in June+February, 5438, Kehong was established in Changshu Economic Development Zone, and he became the chairman.
In 2003, the domestic steel industry just picked up, and the enterprise was a great success as soon as it was put into production. So she set up Sing Tao in Changshu Economic Development Zone, which was also very successful.
This is because the domestic textile, automobile, household appliances and other industries have been heating up since 2003, and the export growth rate is relatively fast, which has driven the rapid growth of the demand for related machinery and equipment, and driven the demand for high-tech steel, especially medium and heavy plates. In this context, around 2005, major steel enterprises in China, some overseas funds and private capital invested in the construction of high-tech steel production lines.
As a pioneer, Kehong undoubtedly has a huge market advantage. It's hard to get rich at this time!
In the following years, She Chuntai successively established or merged four similar enterprises, including Changshu Xinghai Xinxing Building Materials Co., Ltd., Changshu Chineydy Xinxing Building Materials Co., Ltd. and Changshu Changgang Plate Co., Ltd., and jointly established China Metal with Sing Tao and Kehong. In 2005, China Metal was listed on the main board of Singapore, raising S $43 million.
For a while, she Chuntai was also the same scenery.
As Kehong 1 Phase II and Sing Tao 1 Phase II have been put into production, the company's profits and taxes have also hit record highs against the background of rising steel prices. In 2007 alone, it achieved sales of11300 million yuan, tax of1700 million yuan and net profit of 400 million yuan, making it the first profit and tax in Changshu. At the beginning of 2008, the company's senior management announced that the annual sales may reach 654.38+0.6 billion to 654.38+0.8 billion yuan, and the goal is to reach 5 million tons of galvanized steel production capacity in 2065.438+0.
For this goal, she and others began to plan to leave Changshu and seek faster development. According to the above-mentioned insiders, a subsidiary named "Yiyuan" has also been established in Tianjin, and plans to invest and build factories in Vietnam have been started (note: Zhang is the general manager of Vietnam Branch). They hope to become the world's top supplier of galvanized thick steel plates within a few years.
"The investment decision of the project under construction was not questioned at that time, and I don't think it was an investment mistake. It's just that no one expected a financial crisis. " The above-mentioned person in charge of Kehong insisted.
However, since 2007, with the decline of domestic exports and the intensification of the global financial crisis, She Chuntai's idea has turned into a terrible financial black hole, and the completion of new production lines of domestic counterparts has intensified the market pressure of Kehong and others, so domestic banks decided to urge Kehong to lend, while foreign banks refused to lend to Kehong-Kehong, and had to "stop production" because of the break of the highly indebted capital chain.
"In the second half of this year, all steel products, including medium and heavy plates, showed an oversupply situation." Yang Bing said: "At present, the domestic steel market price continues to fall, but it is empty and there is no big turnover. Downstream demand is depressed to an alarming extent. Kehong will never be the last bankrupt enterprise. " 24068 I hope it will help you!