Dongxu Optoelectronics, which has entered the "suspension mode" since November 19, is expected to run aground again.
On the evening of December 2, Dongxu Optoelectronics announced that the subject matter of this asset restructuring transaction involves more patents, and so far, the audit and evaluation of the underlying assets have not yet been completed, and the recruitment of independent financial advisers for restructuring matters is also in progress. Due to the uncertainty of the matter, upon application to the Shenzhen Stock Exchange, the company's shares (Dongxu Optoelectronics, Dongxu B) continue to be suspended from trading on the morning of December 3, and are expected to be suspended for no more than 5 trading days.
On the evening of the same day, Dongxu Optoelectronics also announced that the interest payment of the second issue of the company's 2016 interim notes failed to be paid on time. This shows that Dongxu Optoelectronics's previous default debt of about 2 billion yuan is expanding.
Three mountains
At present, what is in front of Dongxu Optoelectronics includes at least the "three mountains".
The first is debt default. Shanghai Clearing House has previously issued two announcements saying that it did not receive interest payment funds and interest payment funds for "16 Dongxu Optoelectronics MTN001A" and "16 Dongxu Optoelectronics MTN001B" medium-term notes. Both bonds were issued in 2016 with a total size of 3 billion yuan, with a total principal and interest payable of about 2 billion yuan.
On the evening of December 2, Dongxu Optoelectronics once again made it clear that the second issue of the 2016 interim Notes (16 Dongxu Optoelectronics MTN002) should be sold back and paid interest on December 02, 2019. The total principal and interest payable of this bond is 1.585 billion yuan, accounting for 4.87% of the company's latest audited net assets.
Dongxu Optoelectronics said that due to temporary short-term liquidity difficulties in the company's funds, the above varieties failed to pay interest payable and related resale payments as scheduled. The company is actively raising funds and negotiating with creditors to pay the relevant principal and interest as soon as possible to maximize the interests of bondholders.
Dongxu Optoelectronics needs to cross the "second mountain" is in the announcement of default on the same day quickly announced the possibility of change in the shareholding.
On the evening of November 18, Dongxu Optoelectronics issued an announcement and received notification from Dongxu Group Co., Ltd., the controlling shareholder of Dongxu Group. Dongxu Optoelectronics Investment Co., Ltd., the controlling shareholder of Dongxu Group, intends to transfer its 51.46% stake in Dongxu Group to the State-owned assets Supervision and Administration Commission of Shijiazhuang, which is subject to the approval of the competent unit at a higher level, and this matter may lead to a change in the control of the company.
The "third mountain" is asset restructuring. At the threshold of the company's debt default, Dongxu Optoelectronics began to plan the asset restructuring of issuing shares to the controlling shareholder Dongxu Group to buy its assets.
Dongxu Optoelectronics previously said that the company's main business is the production of TFT-LCD glass substrate, and Dongxu Group is the controlling shareholder of Dongxu Optoelectronics. During Dongxu Group's control of Dongxu Optoelectronics, Dongxu Group signed a "Patent implementation license contract" with Dongxu Optoelectronics and its subsidiaries Wuhu Optoelectronics, Wuhu equipment and Shijiazhuang equipment. This series of patents are the company's main business liquid crystal glass substrate and equipment special patents. The patent necessary for the sustainable development of the company's main business is the technical guarantee to realize the income of the company's main business. In order to fully protect the independence and sustainable development of the company's main business, the company intends to acquire this series of patent assets legally held by Dongxu Group by issuing non-public shares to Dongxu Group.
Resume trading and run aground for the second time.
In the above-mentioned three major issues, debt default is related to liquidity and stability, the transfer of real control involves local state-owned assets, and asset restructuring requires multi-party participation and long-term promotion. For any A-share company, it can be tricky to cross any of the "three mountains". However, Dongxu Optoelectronics has kneaded the three most difficult problems together.
On the whole, for Dongxu system, the thorny problem at present is how to resolve the debt default. The repayment of principal and interest payable by multiple bonds has become an urgent problem for the company, and the transfer of shares in Dongxu Group to state-owned assets can be regarded as derivatives and hedges of this risk.
A big question running through this period is, since the company's real control may be lost, why is the company rushing to issue shares to Dongxu Group to buy assets for restructuring, adding to the burden on the company's way to solve the debt default?
"time for space" may be a possible explanation. Since 2018, the Shenzhen Stock Exchange has continued to promote the reform of the suspension and resumption of trading system, and the phenomenon of arbitrary suspension, arbitrary suspension and long-term suspension of A shares has been contained. In particular, the notice on the issuance of guidelines No. 2 on Information Disclosure of listed companies-suspension of Trading Business stipulates that if a listed company plans to change its control right and offer to acquire, in principle, the planning progress shall be disclosed in stages. If it is really necessary to apply for suspension of trading, the suspension period shall not exceed 5 trading days. Based on this, the cost of companies trying to avoid stock price killing by suspending trading in exchange for problem-solving time has increased significantly.