Economic Observer Network reporter Tian Guobao On June 2, the Economic Observer Network learned from various sources that China Fortune Land Development’s work on debt reduction was once again blocked.
According to the reorganization plan, CFLD plans to raise 75 billion yuan by selling 7 new industrial towns and the southern headquarters business in Langfang to pay off the reorganized debt and restore hematopoietic function, of which the sale of assets is the key.
CFLD has a total debt of 106.1 billion yuan and signed a restructuring agreement with creditors; at the end of March, through the sale of industrial new city projects and related assets in Guangyang, Yongqing and other places, it completed two phases of debt payment of nearly 2 billion yuan. Debt restructuring has stalled and plans to resume operations in early October are expected to be delayed.
A person familiar with the reorganization of CFLD said that the previous actions were quicker and the progress was relatively smooth. The outside world believed that CFLD had passed the most difficult time, but in fact it was still full of crises. And achievements can also go to waste.
Debt is blocked
At the end of 2021, after the CFLD debt committee voted to approve the restructuring plan, CFLD and creditors signed a debt restructuring agreement separately, and the sale of 7 new industrial cities was also launched simultaneously.
In February this year, the Langfang China Fortune Debt Resolving Government Special Class (hereinafter referred to as the “Langfang Special Class”) and the negotiation team formed by the China Fortune Land Development team went to Gu’an several times to negotiate with the Gu’an County Government on the sale of Gu’an New Industrial City. He was persuaded to return by Gu’an for “not making relevant arrangements”.
At the end of April, after negotiation, a special class from Langfang City and CFLD related teams settled in Gu’an, and established a number of teams with the Gu’an County Government, including audit evaluation, agreement negotiation, financing, debt restructuring, etc., to jointly promote the transaction of Gu’an Industrial New City. Negotiation work.
For more than a month, there has been no substantial progress in the negotiations. A person close to the transaction revealed that the Gu’an project is the earliest industrial new city developed by China Fortune Land Development. It’s not that Gu’an is unwilling to take over, it’s mainly that he can’t take it.”
The transaction of Gu’an New Industrial City is not an isolated case. Except for the industrial new city in Guangyang and Yongqing, which were sold to local urban investment companies, the other five industrial new city transactions including Gu’an, Dachang and Xianghe have not progressed significantly.
The above-mentioned person close to the transaction told Economic Observer.com that the transaction value of the seven new industrial cities is about 30 billion to 40 billion yuan. The transaction value of the Guangyang and Yongqing projects is relatively small, and the local government can still accept it. Objection to the transaction amount.
Since 2022, there have been many outbreaks of new coronary pneumonia in Langfang City. The relevant district and county governments are facing greater economic development and financial pressure. It is not an easy task for them to raise billions of dollars in transaction amount in the new industrial city.
No substantial progress has been made so far in the business disposal of the Southern Headquarters. Under the current market conditions, the market acceptance of the sale price determined by the special class was relatively low. Since the asset price affects the debt restructuring, there is not much room for price reduction.
Up to now, CFLD still has 120 billion yuan of debts that have not signed a restructuring agreement, mainly including more than 40 billion yuan of overseas liabilities, more than 30 billion yuan of self-owned liabilities for projects, and more than 30 billion yuan of various financial loans, of which the main project’s own liabilities are Take away by selling assets.
According to the above-mentioned person familiar with the reorganization of China Fortune Land Development, an important reason for the delay in signing the reorganization agreement for the other more than 30 billion yuan of various financial liabilities is that creditors have questioned the ability of the district and county governments to pay for the acquisition of the new industrial city.
According to the original plan, the debt risk resolution work of CFLD will be completed by the end of September 2022. At present, CFLD has formulated a plan to restore hematopoietic function, including the cooperation and disposal of other industrial new towns, as well as how to resume development, operation and sales. .
However, due to the obstruction of debt restructuring, the implementation of the plan to resume production and operation in early October is expected to be delayed.
The disposal plan of the new industrial city is tortuous
On September 30, 2021, China Fortune Land Development announced a restructuring plan to raise 75 billion yuan in cash through asset sales, of which 57 billion yuan will be used to pay off the related debts that have signed a debt restructuring agreement, and the remaining funds will be used for daily operations and restoration of hematopoietic capacity.
According to the original plan, Hebei New Airport Development Investment Co., Ltd. (hereinafter referred to as “Hebei New Airport”) will undertake the seven new industrial cities in Langfang City by cash acquisition, that is, Hebei New Airport will acquire the heavy assets of seven new industrial cities, and the park will attract investment, Operations, etc. are still under the responsibility of China Fortune Land Development.
At the beginning of October 2021, less than a week after the announcement of China Fortune Land Development’s debt restructuring plan, the special class in Langfang City adjusted the plan of Hebei New Airport to acquire seven new industrial cities in Langfang, and changed it to the county government in the area where the new industrial cities are located.
The above-mentioned person familiar with the reorganization of China Fortune Land Development stated that initially Hebei Province required Langfang City to undertake 7 new industrial cities, and Langfang City established Hebei New Airport as the main body to undertake the acquisition. This adjustment of the main body of acquisition means that Langfang City will once again decompose the task of undertaking the acquisition to the district and county governments. .
In November 2021, that is, one month after the adjustment of the asset restructuring plan, during the communication between the Langfang City class and the creditors of China Fortune Land Development, the plan of “7 new industrial cities to be acquired by the district and county governments” was notified, and China Fortune Land Development raised objections. .
Hebei New Airport is a holding company of the State-owned Assets Supervision and Administration Commission of Langfang City. According to the original plan, the Langfang Municipal Government plans to inject relevant land near Daxing Airport. Hebei New Airport will use the land as collateral to raise funds for acquisition from financial institutions.
On March 28, Hebei New Airport signed a strategic cooperation agreement with seven banks including Agricultural Development Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, China CITIC Bank, China Everbright Bank, and Bohai Bank in Langfang Branch, and obtained a total of 100 billion yuan of intentional cooperation. gold.
Due to the lack of hematopoietic capacity of the new industrial city itself, Hebei New Airport is burdened with the mission of developing the Langfang airport economy, and is worried that the acceptance of the new industrial city will put pressure on its own finances.
Based on this consideration, shortly after the announcement of China Fortune Land Development’s debt restructuring plan, a special class in Langfang City adjusted the plan, and the seven new industrial cities were acquired by urban investment companies under the regional and county governments.
Financial institutions welcomed Xinkong Port as the acquisition subject, but after the acquisition subject changed from a Hebei New Airport to a district/county urban investment company, some financial institutions questioned the cash payment ability of the district/county urban investment company, and the districts and cities did not. Willing or unable to take over.
The above-mentioned person familiar with the reorganization of China Fortune Land Development stated that in order to break the deadlock, the special class in Langfang City proposed an alternative plan, that is, Langfang City State-owned Assets Supervision and Administration Commission would invest 51% of the capital to establish a joint venture company with Gu’an County, which would be used as a platform company for the acquisition of Gu’an Industrial New City. , but said it was not aware of the progress of the program.
Previously, China Fortune Land Development has gone through at least two rounds of debt reduction efforts. First, the “Debt Restructuring Plan” was boycotted by some creditors, including members of the debt committee, and then approved by the debt committee under the coordination of government departments; after the debt restructuring plan was passed, There has been no progress in asset disposal. At the end of March, under the coordination of all parties, Guangyang and Yongqing Industrial New City were sold to local urban investment companies, and the asset disposal impasse took a new step; this time, whether CFLD can smoothly promote asset disposal and debt Reorganization, the Economic Observer Network will continue to pay attention.
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