Xu Qing spoke for the top 100 private enterprises to expose another 500 million debt defaults: 7.5 billion debt, freezing equity, litigation entanglement

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Xu Qing spoke for the top 100 private enterprises to expose another 500 million debt defaults: 7.5 billion debt, freezing equity, litigation entanglement

2019-03-01 15:46:43 309 ℃

Wen/Zhu Bangling

Yesterday evening, Luowa Group, Beijing's 10 billion netizens, re-exposed 500 million debt defaults. In December last year, the company disclosed 300 million defaults. After that, the company's equity was frozen and several financial institutions filed lawsuits. This well-known private enterprise in Beijing, the reason why it is a net red enterprise, is to hire Xu Qing, Liu Tao and other stars as spokespersons. Can this newly elected top 100 private enterprises in Beijing get out of the debt crisis?

1. Substantive default of Lowa Group's 500 million-scale directional debt financing instruments

On the evening of February 28, Ningbo Bank announced that Lowa Science and Technology Industrial Group Co., Ltd. failed to pay the principal and interest of "16 Lowa Science and Technology PPN001" in full on February 25, 2019, which constituted a substantive default. Data show that "16 Lova Technology PPN001" has a three-year issuance period, issuing a scale of 500 million yuan, coupon interest rate (current) of 7.3%, the latest main rating of C.

Ningbo Bank said that the default triggered the holding conditions of the "18 Lova Technology MTN001" holder meeting. Ningbo Bank, as the convenor, is scheduled to hold the first holder meeting of Lowa Group's first interim bill of 2018 in 2019 on March 14, 2019. The holder will consider and vote on the first holder meeting bill of Lowa Technology Industry Group's "18 Lowa Technology MTN001" in 2019.

< H1 data-paragraph-id= "0d916826">2. There are 4.1 billion yuan of unrestricted currency funds on the books. Even 300 million yuan of cash can not be paid out

< p> On December 6, 2018, about 300 million yuan of short-term financing bonds of Beijing-based Luowa Science and Technology Industrial Group Co., Ltd. - "17 Luowa Science and Technology CP001" failed to meet the deadline, resulting in substantial default and triggering cross-default of multi-period bonds. Immediately, dozens of investors came to collect debts, and rating agencies such as Joint Credit and Sino-Credit International downgraded the credit ratings of Lova Group and related bonds.

However, it is quite paradoxical that only two months ago, the Lova Group's quarterly report of 2018 also showed that the book unrestricted currency funds still have 4.1 billion yuan. Why is it that after more than two months, even 300 million yuan of cash can not be withdrawn? Moreover, the company keeps billions of dollars in cash on its books all year round, but frequently raises money by issuing short-term bonds.

The data of Lowa Science and Technology's three-quarter report last year show that from January to September 2018, the company realized 6.455 billion yuan in business income, 592 million yuan in net profit and 613 million yuan in net cash flow from business activities. By the end of September 2018, the total assets of the company were 18.263 billion yuan and the total debt was 7.593 billion yuan, of which 2.167 billion yuan were short-term debts and 4.155 billion yuan were currency funds, of which the parent company's calibre currency was 2.812 billion yuan.

< H1 data-paragraph-id= "2b24d088"> 3. Many financial institutions have filed lawsuits against Lova Group for breach of contract

Since this year, many financial institutions have filed lawsuits against Lova Group. Among them, Huachuang Securities Co., Ltd. has filed a lawsuit against Luowa Group, involving a total amount of 49.9 million yuan; China Post Venture Fund Management Co., Ltd. filed a lawsuit against Luowa Group on January 15, 2019, involving about 10.2 million yuan for "company bond transaction dispute"; Jinxin Fund Management Co., Ltd. sued Luowa Group on January 15, 2019, involving 20 million yuan; Beijing Yourui Holdings Investment Management Co., Ltd. Company Limited applies to the court for payment order, amounting to about 32 million yuan.

4. After the freezing of shares, millions of property of Luowa Daily Chemicals were frozen again

The People's Court of Chaoyang District of Beijing ruled on January 3 that the property under the name of Beijing Luowa Daily Chemicals Co., Ltd. of the respondent was sealed up and frozen with a value of 1.337 million yuan. This ruling shall be enforced immediately. The freeze came from the application of Beijing Century Kangtai Industry and Trade Co., Ltd. On January 14, people from Beijing Century Kangtai Industry and Trade Co., Ltd. said that the application for freezing Luowa Daihua was due to contract disputes caused by arrears.

On January 7, the media reported that Luowa Rihua, an important subsidiary of Luowa Group, had quietly appeared the information of judicial assistance, indicating that its shares had been frozen. On January 10, the rating agency Joint Credit issued the Notice of Concern about the Freezing of Equity Ownership of Lova Group's Subsidiaries, saying that it had contacted Lova Group on the above-mentioned matters. Joint Credit will closely monitor the progress of these matters.

5. Inviting stars as their brand spokespersons

Luowa Group is a private enterprise located in Beijing. It was founded in 1995 and is an enterprise group integrating three major industries: daily chemical industry, food industry and tourism real estate. In recent years, the company has invited stars such as Xu Qing and Liu Tao as its brand spokespersons, named all kinds of variety activities and implanted them into popular TV series, and Lova laundry lotion has gained popularity. In June this year, Lova Rihua was awarded the honorary title of "Top 100 Enterprises with Special Ability in Light Industry of China in 2017". In October, Luowa Science and Technology appeared in the "Top 100 List of Beijing Private Enterprises in 2018", ranking 34th. Lova Rihua, a member of Lova Group, was listed on the New Third Board and delisted in January this year.

The company also launched marketing and advertising sponsorship activities for business promotion. In 2014, movie star Xu Qing was hired as the spokesperson of Lova Daihua. Over the past few years, Lova Daihua has won many titles and sponsored popular TV variety shows. Not only that, Shuangwa Dairy Company also hired movie star Liu Tao to become its brand spokesperson.