The hope of Kaidi’s ecological restructuring is not very high. Kaidi Ecosystem is currently facing difficulties, which are mainly reflected in the following aspects: (1) listed companies default on fuel payments to fuel suppliers, which often results in fuel suppliers blocking the company's door in the past six months; (2) arrears of employee wages for half a year; (3) Due to insufficient funds, most of its power plants have been shut down, and the company is unable to generate operating cash flow; (4) The debt default problem of listed companies has never been resolved. In this case, the listed company plans to introduce a powerful third party for joint restructuring such as asset disposal, debt restructuring, and equity restructuring.
1. The reason why Kaidi Ecology was recorded
Kaidi Ecology was recorded: Shareholders who have suffered information disclosure violations can defend their rights. On May 7, Kaidi Eco received an investigation notice from the China Securities Regulatory Commission. Suspected of violating information disclosure rules due to company-related actions. According to the relevant provisions of the Securities Law of the People's Republic of China, the China Securities Regulatory Commission decided to launch an investigation into Kaidi Ecology. It is worth noting that Kaidi Eco has not resumed trading since its suspension on November 16 last year. What is even more shocking is that the company has not yet disclosed its 2017 annual report and 2018 first quarter report.
2. Kaidi’s ecological debt is nearly 30 billion
Faced with such a loss-making enterprise, the company began to have frequent personnel changes. Li Mansheng, director of Kaidi Ecological Technology and legal representative of Linli Power Plant, submitted his resignation application to the listed company. However, considering that this resignation would bring more negative impacts, the listed company rejected this request. As the largest biomass power generation company in China, Kaidi Ecology’s main business, biomass power plants, has been shut down on a large scale.
To sum up, many netizens found that Kaidi’s ecological reorganization seemed to lack sincerity. In the process of looking for objects to reorganize, Kaidi still implements the opacity principle developed over the years. This approach of listed companies is not conducive to enhancing investors' confidence in the secondary market, and will also frighten potential investors in M&A funds related to Kaidi's ecological reconstruction.