Major Shareholder Debt Restructuring Continued When *ST Silver Pigeon Denomination Risk Continued

In May 19th, *ST silver pigeon (600069.SH Henan Silver Pigeon industrial investment Limited by Share Ltd, hereinafter referred to as the "Silver Pigeon investment") was opened on the limit plate and closed at 0.82 yuan / share. This is the investment of silver dove since May 13th. The stock price has been lower than 1 yuan for fifth consecutive trading days, and the risk of face value delisting has been enlarged again.

The share price of *ST Silver Pigeon continues downwards, and it is not related to a notice issued on the previous announcement. In May 17th, the investment of silver pigeon was received in May 15th, and the investigation notice was received by the SFC.

At the same time, debt restructuring of silver pigeon investment large shareholder silver pigeon group is also advancing. In May 12th, the controlling shareholder, the silver pigeon group, the Luohe Finance Bureau and the related creditor's rights institutions held a rescue communication meeting to discuss matters related to debt restructuring.

"The rescue plan has not made any concrete progress, and it also takes into account the issue of face value delisting. It should not be too long." In May 19th, the silver pigeon invested in the secretaries' office to call the investor's identity twenty-first Century economic report.

Twice wearing a hat

Silver Pigeon investment was formerly the first paper mill in Luohe. The main business of the company is paper production and sales. It was listed in 1997 and is known as "the first straw pulp paper". But since its listing, the company's performance has experienced ups and down, twice being "*ST".

In 2011, the Luohe municipal government transferred the 100% stake of Luohe silver pigeon group to Henan coal chemical group (Henan energy group predecessor) without compensation. However, after the Henan energy group took the lead, the investment performance of silver dove was still not optimistic. In March 2015, the investment of silver pigeon was "wearing a star cap" for two consecutive years of losses.

In 2015, silver pigeon investment successfully realized losses through the disposal of assets. But after that, it is still unable to change the current situation of the main industry's continuous losses.

In 2016, the silver pigeon investment investor was granted the Henan SASAC release, and agreed that the company's indirect controlling shareholder, Henan energy group, had a 100% stake in the state-owned silver pigeon group. In the year, silver pigeon investment is attracting new investment.

In fact, the two parties have indicated that they will inject high-quality assets, but they have not been implemented for various reasons.

In 2018, the investment of silver pigeon fell into a deficit again, with a deficit of 89 million yuan, and the deficit in 2019 expanded to 638 million yuan, and the annual report was issued non-standard opinions. At the end of the first quarter of this year, the investment of silver pigeon was 67 million yuan, and its asset liability ratio was as high as 72.37%, the highest level in history. In April 30th, the investment of silver pigeon was once again "wearing stars and wearing caps".

Behind the performance loss is the exposure of a series of thorny issues.

According to the special statement issued by Li Xin on the audit opinions of the 2019 annual report, there will be a huge and extensive impact on the financial statements of the listed companies, such as huge amount of violation guarantee, large trading customers and abnormal settlement, large sums of related party funds occupation, and large commercial acceptance bills involving litigation.

Related regulatory measures are pouring in. In September 2019, due to the lack of prudence in the planning and reorganization of the suspension and the delay in the letter, the silver pigeon invested in a timely manner as chairman Gu Qi, Dong mi Xing Zhiheng and Dong Mi Luo, Jinhua received the decision of the Shanghai stock exchange for disciplinary action. In February 2020, 5 people, including Gu Qi, were criticized by the Shanghai stock exchange for failing to fulfill their commitments on time.

In April of this year, the silver pigeon investment received a warning letter from the Henan Securities Regulatory Commission on the violation of the guarantee. It was identified that the investment in the silver pigeon provided a guarantee for the silver pigeon Group's total loan of 699 million yuan in the Central Plains bank. In May, listed companies and Gu Qi, Xing Zhiheng and others were criticized by the Shanghai stock exchange for violation of regulations.

Under this situation, personnel changes are frequent. According to incomplete statistics of economic report reporters in twenty-first Century, many executives of silver dove investment directors, general managers, deputy general managers and chief financial officers have left since 2019.

Violation guarantee

In the above-mentioned problems of silver pigeon investment, the market is most concerned about the company's violation of security matters.

Over the past year, there has been an endless stream of news about the illegal guarantee of the listed company as the controlling shareholder of the silver pigeon group. The listed company has repeatedly clarified that it has denied the existence of the guaranty matter on the grounds that no relevant guarantee documents have been found and records of the use of the official seals have not been found.

      For example, in December 2019, the silver pigeon investment issued a Clarification Announcement, which denied 7 guarantees at one time, including the 40 million and 353 million loans of the silver pigeon group and the coastal bank of Yingkou, 300 million loans from Tianjin Binhai agricultural firm, 699 million loans with Zhongyuan bank, 700 million loans with Zhongcheng trust and Jiangyin central China, 12 million yuan loan with Fitch lease, and Henan trillion Teng 15 million and 13 million loans. A total of 2 billion 432 million yuan loan guarantee disputes were involved.

For the loan to the Central Plains bank, the silver pigeon group explained that the loan was the latter's normal stock pledge loan based on the support of the local entity manufacturing industry, and the relevant provisions and relevant guarantee documents of the listed company's guarantee were not required in the relevant archiving financing materials.

But the clarification was "hit" by the Henan Securities Regulatory Commission.

Henan Securities Regulatory Commission survey found that in November 21, 2018, the listed company as a guarantor and the Central Plains Bank signed the highest guarantee contract, for the silver pigeon group to provide the maximum debt limit of 6.99 The company has issued a warning letter to the company and chairman Gu Qi and Dong Xing Xing Heng, and requested the company to check and reform itself.

And the 12 million private lending with Fitch leased, the silver pigeon group said that it was closed in June 2019, and there was no guarantee contract for the company, nor did the creditor demand the company to assume the guarantee responsibility.

Fitch leasing also provided a letter of commitment from the silver pigeon investment signed with the Tianjin Binhai agricultural firm for two yuan of 300 million yuan loan, and a letter of commitment signed with Henan trillion 15 million yuan and 13 million yuan. In the letter, the investment of the silver pigeon indicated that they were jointly and severally liable for the loan of the silver pigeon group. The official seal and the signature of Gu Qi were also included.

But investment in silver pigeons has yet to admit its authenticity. "These seals do not check the process, do not know what is going on, whether it is true or false, and have yet to be investigated by the regulatory authorities." In May 19th, the company's secretaries general told reporters, "if the seal is not in conformity with the usage process, the guarantee agreement is invalid, and the money will not be required by the company."

A senior lawyer engaged in securities related legal affairs told reporters on twenty-first Century economic report, "if the listed companies did not find the printing record and the process of approval, the guarantee would be invalid according to the latest interpretation of the Supreme Court."

In fact, the investment of the silver pigeon is being investigated by the SFC, and it can not be tied up with the illegal guarantee. From the notice of investigation, the reason for the investigation is faith violation. In response, in May 19th, the silver pigeon investment director of the Commission said frankly, "the main problem is the guarantee problem, while the 2019 performance notice is a bit small."

Debt restructuring of major shareholders

The impact of the investigation by the SFC is very small. After the announcement of the relevant announcement, second days of trading, silver pigeon investment was directly hit by the limit, and the stock price became the most worrying problem for the company at the moment.

"It depends on the results of the survey, and if the result is not good, it will be very bad." The executive director of the secretaries said.

On the one hand is supervision, and the other is that the share price falls below the face value. The most urgent task is to solve the debt problem of the controlling shareholder of the silver pigeon group.

As the silver pigeon group was in debt, as of May 7th, the 769 million shares of the Group owned by the silver pigeon group were frozen by the relevant courts for the three time, accounting for 47% of the total share capital, accounting for 100% of the shares held by the company. The debt problem of large shareholders has indirectly led to listed companies in recent years.

In May 12th, the local government extended a helping hand. The silver pigeon investment announcement was held on the same day by the silver pigeon group, the Luohe Finance Bureau and the related creditor's rights institutions. The debt restructuring plan has yet to be identified and has significant uncertainties in the company's impact.

According to the Henan local media Dahe newspaper, the leaders of the Luohe financial work bureau have expressed the determination of the Henan provincial government and the Luohe municipal government to rescue the silver pigeon group, and introduced a joint rescue fund scheme jointly sponsored by Luohe Development Investment Co., Ltd. and Zhongzhi enterprise group.

"The convening of this conference marks the government's determination to rescue the silver pigeon group," he said. At the same time, we will reach a consensus with all creditors and work hand in hand to solve the current problems. "

According to our earlier reports, the reporter learned from the people close to the silver pigeon group that the main idea of the bailout plan is to let the bailout fund lay a solid foundation for the debt of the silver pigeon group, and then the bailout fund will provide liquidity relief to the silver dove as a new creditor, and ultimately solve the debt dilemma of the silver pigeon group.

In May 19th, the economic report reporters on twenty-first Century sent a call to Luohe to further understand the rescue plan. Its office staff let reporters "wait first", "because of the company's information, can not be casually released."