On September 17, the Bank of Shanxi publicly listed five creditor’s rights transfer projects with a total creditor’s rights of 5.584 billion yuan on the website of the Shanxi Provincial Property Rights Exchange Center, involving 43 enterprises including HNA Group. Among them, the total debt of HNA Group is 744 million yuan, and the listed reserve price is only 143 million yuan.
However, the “Daily Business News” reporter noticed that the above-mentioned HNA Group’s creditor’s rights transfer project, which was about to be “sold” at a reserve price of 20%, was “delisted” within a week after it was launched, and the remaining four Shanxi Bank creditor rights are still being made public. After being listed, individual projects will continue to recruit interested transferees after slight adjustments.
On September 28, the reporter learned from the staff of Shanxi Provincial Property Rights Exchange that, at the request of Shanxi Bank, its HNA Group’s creditor’s rights transfer project had been withdrawn from the listing on September 24 for unknown reasons. As for whether the project will be listed again in the future, the bank has not yet given exact information.
It is worth noting that the withdrawal of the listing of Shanxi Bank coincided with the release of the draft of the HNA reorganization plan. On the evening of September 27th, as the core enterprise of HNA Group’s main aviation business, *ST HNA (hereinafter collectively referred to as “HNA Holdings”) disclosed the draft reorganization plan of the company and ten subsidiaries, indicating that it will coordinate the arrangement of debt repayment resources and unify Debt service. On September 29, the second creditors meeting of the substantial merger and reorganization of 321 companies including HNA Group was held and the merger and reorganization draft was disclosed.
So, is the withdrawal of Shanxi Bank’s listing related to the information released by the new progress of HNA’s reorganization? How will this debt be dealt with next? With these questions, the reporter was unable to get in touch with the relevant parties of Shanxi Bank after several setbacks.
“Generally speaking, financial claims are divided into secured claims and non-secured claims according to whether they are secured or not. As reflected in the draft reorganization plan announced by HNA Holdings, they are property-secured claims and ordinary claims.” Beijing Deheheng (Shenzhen) ) Law firm lawyer Jiang Yangbing said in an interview with reporters that if a bank is a creditor of HNA Holdings and its subsidiaries, according to the draft reorganization plan announced by HNA Holdings, the creditor’s rights can be repaid by participating in the reorganization plan after confirmation.
Listed for the first time after opening for batch disposal of claims
On September 17, the Bank of Shanxi listed a batch of creditor’s rights transfer projects on the website of the Shanxi Provincial Property Rights Exchange. This is the first time that the bank has disposed of creditor rights in batches by way of public listing since its establishment and opening in April 2021.
Judging from the listing announcement, there are a total of 5 creditor’s rights transfer projects in this batch, with a total creditor’s rights amounting to 5.584 billion yuan. One of them came from HNA Group, with an amount of 744 million yuan of claims; the other four were all “mixed and matched” claims by multiple corporate claims, with a total amount of claims of 4.84 billion yuan.
As for the transferee, Shanxi Bank has set a certain qualification threshold. For example, in some projects, the transferee is required to have sound corporate governance, internal management control mechanisms, and more than 5 years of experience in non-performing asset management and disposal, and the company’s registered capital of more than 10 billion yuan (inclusive), and obtain regulatory authority Companies that have issued financial licenses, as well as asset management or operation companies established or authorized by the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government. When there are multiple intended transferees, online bidding will be used to determine the transferee.
As a bank that has only been in business for 5 months, Shanxi Bank’s claims may come from before the reorganization. Public information shows that Shanxi Bank was established in April 2021 with a registered capital of 23.996 billion yuan. It was established through a new merger based on the original Datong Bank, Changzhi Bank, Jincheng Bank, Jinzhong Bank, and Yangquan Commercial Bank. Provincial corporate city commercial bank.
After its establishment, Shanxi Bank inherited all the assets, claims, debts, businesses and personnel of the above five city commercial banks. According to the information disclosure report of Shanxi Bank for the second quarter of 2021, as of the end of June 2021, the bank’s assets were 277.674 billion yuan, total owners’ equity was 24.123 billion yuan, various loan balances were 141.09 billion yuan, and various deposit balances were 205.931 billion yuan.
According to the website of Shanxi Provincial Equity Exchange Center, in early September this year, Shanxi Bank has signed a comprehensive strategic cooperation agreement with Shanxi Provincial Equity Exchange Center. The two parties are expected to deal with the inventory of non-performing assets, repossessed assets, deposits, settlement, transaction financing, etc. Carry out in-depth cooperation in many aspects.
“The creditor’s rights transferred by banks are generally non-performing creditors’ rights. As a means of disposing of non-performing assets and resolving financial risks, issues related to the transfer of financial non-performing creditors’ rights have been increasingly resolved and improved in judicial practice.” Beijing Deheheng (Shenzhen) Law Firm Lawyer Jiang Yangbing said that for the transfer of financial non-performing claims, the people’s courts implement the provisions of the law during the trial and enforcement process, first of all adhere to the principles of autonomy of will and equal protection, and respect the market nature of the transfer of financial non-performing claims and the autonomy of transaction behavior. In addition, the “Supreme People’s Court Minutes of the Working Forum on Trial of Cases Involving the Transfer of Non-performing Financial Credits” also made restrictive provisions on the transferee and content of the transfer of non-performing financial credits.
The ultra-low discount HNA Group’s creditor’s rights transfer project is “delisted”
Unexpectedly, after this batch transfer of creditor’s rights attracted market attention, Shanxi Bank has quietly removed the HNA Group’s creditor’s rights transfer project recently and adjusted individual projects that are still continuing.
On September 28, the reporter noticed that Shanxi Bank’s creditor’s rights transfer projects listed on the Shanxi Provincial Property Rights Exchange Center had changed from five to four, and the HNA Group’s creditor’s rights transfer projects had disappeared.
“HNA’s (project) has been withdrawn. This was requested by Shanxi Bank. They did not explain the specific reasons.” On September 28, the staff of Shanxi Provincial Property Rights Exchange told reporters that at the request of the transferor Shanxi Bank, The center withdrew the listing of this project on September 24.
The reporter saw that up to now, the other 4 claims are still listed for transfer at the Shanxi Provincial Property Rights Exchange, and the listing end date will continue until September 30. but,Among them, the “Debt Transfer Project of Zhejiang Yufu High-tech Fiber Co., Ltd. and other 8 companies” was adjusted to “Zhejiang Yufu High-tech Fiber Co., Ltd. Creditor’s Right Transfer Project”. .
The listing information shows that after the expiration of the information release period for the above four debt transfer projects, if the intended transferee is not solicited, a period of 5 working days will be extended until the intended transferee is solicited.
In fact, among the five debt transfer projects previously listed by Shanxi Bank, the one involving HNA Group is the most eye-catching, because this debt dealt as a single account not only has the highest total amount, but also has the greatest discount.
Judging from the listing price before the adjustment,The total creditor’s rights of the HNA Group held by Shanxi Bank is 744 million yuan, but the reserve price is 143 million yuan, which is only 19.25% of the total creditor’s rights., Which is equivalent to “sale” at less than 20% off. The other 4 credit package discounts are not the same. in:
Shaanxi Changda Oil and Gas Engineering Technology Service Co., Ltd. and other five companies have debts of 1.567 billion yuan, and the listed base price is 842 million yuan, which is about 5.37% off;
Zhejiang Yufu High-tech Fiber Co., Ltd. and other 8 companies have debts of 1.462 billion yuan, and the listed base price is 554 million yuan, which is about 3.79% off;
17 companies including Yangquan Tianyu Coal Preparation Co., Ltd. have a debt amount of 1.097 billion yuan, and the listed base price is 420 million yuan, which is about 3.83% off;
Inner Mongolia Mengxing Coal Industry Co., Ltd. and other 12 companies have debts of 714 million yuan, and the listed base price is 303 million yuan, which is about 4.25% off.
“The intuitive discounts displayed for each creditor’s rights are actually based on the value calculated after comprehensive assessment of the assets.” A practitioner in the special asset management industry told reporters.When the bank transfers the creditor’s rights to the outside, it usually makes a comprehensive assessment of the collateral, the guarantor’s solvency and other factors, determines the approximate recoverable amount, and then transfers it to the outside according to this amount.. In short, the lower the creditor’s rights discount, the more difficult it is to recover, and the less the recoverable amount is relative to the creditor’s amount.
So, will the two-fold HNA Group’s creditor’s rights that have been “appeared” for a short period of time be “on the shelves” again, reappearing in the open market? In this regard, the staff of the Shanxi Provincial Property Exchange Center told reporters on September 28 that they have not yet received an instruction to restart the project, and suggested that they can continue to pay attention to the information on the official website of the Shanxi Provincial Property Exchange Center.
New progress in HNA’s reorganization
Why has the publicly listed debt transfer project changed?
It is worth noting that the HNA Group’s outbound creditor’s rights transfer project of the Bank of Shanxi was in a critical period when the HNA restructuring plan was released.
On the evening of September 24, HNA Holdings, the core aviation company of HNA Group, issued an announcement that the second creditors meeting of the company and its subsidiaries will be held on September 27. The meeting will vote on the draft reorganization plan.
According to the “Reorganization Plan (Draft) Summary Edition of Hainan Airlines Holding Co., Ltd. and its Ten Subsidiaries” published by HNA Holdings on September 27 (hereinafter referred to as the “Draft Reorganization Plan”), HNA Holdings and its ten subsidiaries Reorganization will be coordinated in accordance with the law, and the funds invested by strategic investors, future operating income from continuing operations, HNA Holdings’ capital surplus stocks and debt repayment resources will be used to resolve eleven companies as a whole. The company has all debts, and announced the classification, adjustment and repayment plan of the claims.
According to media reports, on the morning of September 29, the second creditors’ meeting of the substantive merger and reorganization of 321 companies including HNA Group was held. At the meeting, the draft of the substantive merger and reorganization of 321 companies including HNA Group was disclosed.
So, is Shanxi Bank’s withdrawal of the transfer of the creditor’s rights to HNA Group related to the information released by the new progress of HNA’s reorganization? How will the bank deal with this creditor’s rights next? With these questions, the reporter was unable to get in touch with the relevant parties of Shanxi Bank after several setbacks.
However, it is obvious that with the release of the “Draft Reorganization Plan”, whether HNA Holdings’ debt repayment plan can proceed smoothly will become the focus of creditors’ attention.
“Generally speaking, financial claims are divided into secured claims and non-secured claims according to whether they are secured or not. These are reflected in the draft reorganization plan announced by HNA Holdings. They are property-secured claims and ordinary claims.” Lawyer Jiang Yangbing analyzed that if A bank is a creditor of HNA Holdings and its subsidiaries. According to the draft reorganization plan announced by HNA Holdings, the creditor’s rights can be repaid by participating in the reorganization plan after confirmation.
Lawyer Jiang Yangbing stated that according to the “Draft Reorganization Plan”,If it is a creditor’s right secured by property, its principal and interest can be paid first within the scope of the market appraised value of the secured property. The part of the principal and interest outside the range of market appraised value will be adjusted to ordinary claims, which will be paid off according to the repayment method of ordinary claims.
The adjusted property-guaranteed claims will be paid off by the guarantor or the owner of the construction project, but the retention period is longer. As long as HNA can reorganize and continue to operate, these claims may be completely repaid.
If it is an unsecured claim, it shall be paid off as an ordinary claim.
In addition, according to the “Draft Reorganization Plan”, bank claims may also be disposed of through the “debt-to-equity swap.”
“In the course of corporate bankruptcy and reorganization, the legal provisions on the’debt-to-equity swap’ between banks and enterprises still need to be perfected, and judicial practice is also more complicated.” Lawyer Jiang Yangbing believes that from the perspective of banks, debt-to-equity swaps are not considered to be an issue. The best way to solve the problem of repayment is that after the bank converts the debt held by the bank into equity, the debt-to-equity swap period or reorganization period between the bank’s creditors and the debtor expires. According to the debt-to-equity swap agreement or reorganization plan, all the claims can be recovered, but it is also possible that the recovery of the enterprise is not so good, and the bank can only recover part of the claims.
Cover image source: Photograph.com
