The dust on the “Yurun restructuring plan” was settled, and more than 100,000 jobs were saved

2022-06-06 0 By

At the end of the lunar New Year, yurun Group, a leading meat company, finally met the critical moment of rebirth after years of debt troubles.Securities Times · E company reporters learned that on January 29, nanjing Yurun and other 44 companies restructuring plans were approved by creditors, and the Nanjing Intermediate People’s Court ruled that the effective.The “Yurun restructuring plan”, which lasted for more than a year, was finalized and will enter the implementation stage.The restructuring plan of Yurun consists of 78 companies (unlisted) including Yurun Holdings and 44 companies (listed) including Nanjing Yurun Holdings.Among them, on December 31, 2021, the restructuring plans of 78 companies including Yurun Holdings were voted by creditors and approved by The Nanjing Intermediate People’s Court.Now Nanjing Yurun and other 44 companies restructuring plan has also been passed.According to the results of the creditors’ vote, 99.72% of the creditors voted for the property secured debt, and 96.67% of the creditors voted for the debt.Reforming successfully saved more than ten thousand people jobs yurun group was founded in 1993, headquartered in nanjing, jiangsu province, is a food processing, agricultural products logistics and commercial retail as its core business of large private enterprise group, which owns yurun food, central mall two listed companies, have been the first impact of the world top 500 in jiangsu province well-known private enterprises.In 2014, Yurun Group achieved sales revenue of about 150 billion YUAN with 130,000 employees. Its comprehensive strength ranked 7th among China’s Top 500 Private Enterprises and 110th among China’s Top 500 Enterprises.However, since 2015, affected by the founder’s sudden events, Yurun Group has been hit by financial debt default, litigation arbitration, asset seizure and freezing, etc., and its development has fallen into difficulties.In order to solve the debt crisis and help enterprises revitalize their assets and recover from difficulties, with the support of Jiangsu Province, Nanjing Municipal government and relevant departments, Yurun Group officially started the debt restructuring on November 16, 2020.After more than a year of efforts, the restructuring plan of Yurun Group was finally approved by a large number of votes, avoiding the worst outcome of bankruptcy liquidation.Yurun Group has 30,000 employees and more than 100,000 people in the upstream and downstream industrial chains, and tens of thousands of small, medium and micro enterprises (pig breeding farmers, vegetable farmers and fruit farmers and other base growers, farmers’ batch market operators, franchisees of Yurun stores, etc.) attached to the Industry chain of Yurun have secured their jobs.Yurun group officials said that with the implementation of the restructuring plan, it will provide more jobs to the society, drive more market players, and shoulder greater social responsibility.To maximize the protection of creditors’ interests, the restructuring manager of Yurun integrated all high-quality corporate resources of Yurun Group to build a securitization platform — Yurun Select, which was injected into the two core businesses of food processing and agricultural products logistics.Prior to this, Jiangsu Yurun Selected Food Co., Ltd. was registered and established on December 31, 2020.Yurun group restructuring plan to restructure his 122 companies incorporated in the scope of more than $80 billion of debt, to properly solve, to “cash settlement of amortize + + for debt to a debt repayment” stepwise sinking, do a complete coverage of principal and interest of the creditor’s rights, don’t discount liquidation and enforcement, the greatest degree to protect all the creditors’ interests.Specific repayment methods include: one-off cash repayment of less than 300,000 yuan within one year;3 million to 3 million yuan cash settlement within five years;Over 3 million yuan, a debt-to-equity swap will be implemented at a price of 17.8 yuan per share.After the completion of the share transfer, the equity structure of Yurun Select is as follows: the creditor of the share transfer holds 37.29% of the share, Yurun Holding holds 33% of the share, China Huarong, the strategic investor, holds 7% of the share, and 22.71% of the reserved shares are used for the settlement of the priority creditor’s rights and the implementation of share compensation under the performance betting.Yurun Has promised to achieve net profit of no less than 5 billion yuan in 2026 and submit listing application within 2027.After reaching the goal of the restructuring plan, the convertible creditors will withdraw from the securitization platform and may obtain higher returns from the capital market.To secure the creditor for creditor’s rights debt repayment and normal turn exit yurun selected shares held by the creditors, yurun restructuring plan to set up multiple security mechanisms, including debt creditor’s credit guarantee mechanism, stock price and the net profit of compensation mechanism, exceed the time limit listed shares buy-back mechanism, guarantees controls people out and equity after the carrier mechanism, etc.On April 29, 2021, Nanjing Intermediate People’s Court ruled that 122 companies of “Yurun Group” should be substantially merged and restructured.After creditor’s rights review, asset evaluation, creditor’s rights declaration, creditor’s negotiation, public selection of restructuring investors, restructuring plan formulation, creditor’s meeting, and creditor’s voting, yurun restructuring plan has been carried out in an orderly manner in accordance with laws and regulations within the framework of marketization and rule of law.From November 29, 2021, the “Two Debt Meeting” of Yurun restructuring will be held in the form of network, and all creditors will vote on the restructuring plan of Yurun.By the end of voting on January 28, 2022, the overall restructuring plan of 122 Yurun Group companies has been approved by the overwhelming majority of creditors, and the number of creditors and the number of creditor shares have exceeded the statutory conditions for approval. The creditors are full of confidence in the future development of Yurun group.On December 14, 2021, the restructuring Investment Plan submitted by Jiangsu Branch of China Huarong Asset Management Co., Ltd. was approved by the review and vote of the restructuring investor selection panel, and Huarong Asset Became the strategic investor of Yurun Group.Huarong Asset will invest 3 billion yuan in Yurun Select Securitization platform to provide liquidity support for Yurun to resume production capacity construction.The civil ruling issued by The Nanjing Intermediate People’s Court shows that the restructuring plan formulation and voting procedures are legal, the contents comply with the provisions of the law, and the business plan is feasible. Therefore, the ruling approves the restructuring plan of Yurun Group, and terminates the substantive merger restructuring procedure.At this point, the restructuring case of Yurun Group has been concluded, laying a solid foundation for the recovery of subsequent enterprises.The successful restructuring will achieve the effect of “multiple wins in one case” as a typical case with great influence in the country, as well as the first judicial restructuring case of large private enterprises in Jiangsu province, the adoption of yurun restructuring plan has a certain demonstration effect on resolving the debt risks of difficult private enterprises.The reporter of Securities Times · E company learned that the “Yurun Restructuring case” was written into the court work report at the fifth meeting of the 13th People’s Congress of Jiangsu Province held on January 22, 2022.Xia Daohu, president of Jiangsu High Court, pointed out in the report that in the merger and restructuring of Yurun Group, Nanjing Intermediate People’s Court guided the enterprise to introduce strategic investment, effectively integrated resources and resolved debts of about 80 billion yuan.Yurun reorganization case not only resolve the key enterprises of the debt crisis, also ensure the yurun holding 78 companies such as employees and 50000 people in the industry of employment, to protect the legitimate rights and interests of the creditors and the parties, for the people’s court to save large private enterprises out of the woods, high quality of service to the local economy development has accumulated valuable experience.In judicial restructuring cases, whether the interests of all parties can be taken into account to reach a consensus and seek the greatest common divisor and the best balance point is the key to the success of restructuring.After accepting the case, The Nanjing Intermediate People’s Court guided Yurun Group, The Manager of Yurun and the debt committee to fully negotiate and provide “comprehensive treatment” to the distressed enterprises.It is understood that the restructuring plan of Yurun is a pragmatic plan reached by the manager of Yurun and the presidium members of the bond committee of state-owned financial institutions such as Bank of China and Bank of Communications after 10 months of negotiations and multiple rounds of consensus, taking into account the interests of all parties.On the premise of protecting the interests of creditors to the greatest extent, the fundamental goal of the reorganization plan is to help enterprises get out of trouble and revive, restore their own “hematopoiesis” function, so that enterprises have the ability to fulfill their creditor’s rights and obligations according to plan, and finally achieve the balance and unity of legal effect, economic effect and social effect, and achieve a win-win goal.The success of yurun restructuring will have significant social significance in three aspects. First, it will help protect the employment of 30,000 employees and more than 100,000 people in the upstream and downstream of the industrial chain, and help fulfill the requirements of the central Government’s “six guarantees” and “six guarantees”, especially for employment, people’s livelihood and market players.2 is beneficial to all the creditors to avoid “hard landing” and cause huge loss 60 billion yuan (bankruptcy liquidation, ordinary debt repayment rate is only 6.62%, have preferred liquidation of creditor’s rights of pledge of arrival rate less than forty percent of all creditors will suffer huge losses), prevent loss of state-owned financial assets, hold not regional major financial risk the bottom line;Third, it will help Yurun Group continue to play its role as a national key leading enterprise of agricultural industrialization in driving farmers to increase their income and get rich, and comprehensively contribute to rural revitalization.According to insiders, Zhu Yicai, the actual controller of Yurun Group, established the strategic principle of focusing on the main business and carried out drastic internal reform after his return to the company on January 21, 2019.Zhu yicai himself worked more than 18 hours a day to save the enterprise in crisis.In the past two years, Zhu yicai led Yurun Food to win the second prize of National Science and Technology Progress award again, becoming the only private enterprise in the industry to win this honor twice.At the same time, Yurun launched thousands of new products, the market share of Yurun brand low-temperature meat products regained the top position, and the amount of live pig slaughter recovered to the top three level in the industry.The number of yurun employees also increased from 12,000 to 30,000, and the business indicators of the company gradually turned normal, showing a steady and positive trend.Another core business is agricultural products logistics, which has basically completed the national layout and now has 18 global agricultural and sideline products procurement centers.In recent years, the business has been steadily improving, with the annual trading volume exceeding 20 million tons and the trading volume exceeding 200 billion yuan. It has jumped from the third in China to the second in the industry and become the leading enterprise in the industry.According to reports, when the epidemic broke out in Chengdu in November 2021, Yurun provided 70% of vegetables and 80% of fruits in Sichuan province.After the outbreak of the epidemic in Xi ‘an city in early December 2021, Xi ‘an Yurun Agricultural Products Global Procurement Center undertook 90% of the supply of fruits and non-staple foods.To be held in October 23, 2021 yurun group member of creditors’ committee on financial institutions coordinate meeting, expression of the principal creditor debt committee that the “four confident:” have faith in yurun industry development potential, have confidence in ZhuYi wealth chairman of the board of directors and management team, have confidence in reforming scheme, have confidence in the government support.Creditors generally believe that The Yurun industry has a solid foundation and a promising future. After completing restructuring, they are confident to achieve the profitability target within five years.According to the “Yurun System Asset Market Value Report” issued by Yinxin, the total assets of the “Yurun system” included in the restructuring plan are 127.3 billion yuan, and the net assets are about 9.5 billion yuan.Through business restructuring, “yurun system” will be the core of the “big” business sector as a whole in yurun securitisation platform, covering the feed, pig breeding, slaughtering, processing, deep processing of meat, poultry, beef and mutton industries, biological pharmaceutical and agricultural products logistics industry, and so on, form the “large food chain” integrated development pattern.Among them, slaughtering, low-temperature meat products and other traditional advantages of the business can be completed in a short period of time, capacity reconstruction, expansion, recovery to a higher level of the industry, still has a leading position in the industry.With financial support, the securitization platform will expand in key areas, rapidly expand production lines, improve production capacity, and build long-term growth drivers.The core business of “Big Food” of Yurun has formed the advantage of coordinated development of the whole industrial chain, which is the stable source of revenue and profit of Yurun Select Securitization platform in the future, the main support for paying off creditors’ debts, and the core operation platform for “New Yurun” to launch its impact on the world’s top 500.With the implementation of the restructuring plan, the equity structure of “New Yurun” company will be more diversified, and the corporate governance will be more open and modern.The person in charge of Yurun Group said that they are confident to achieve the second boom, continue to promote the development of agricultural industrialization, drive tens of millions of farmers to increase their income and become rich, promote the development of local economy, and achieve the grand goal of entering the world top 500.Source: Securities Times