On September 23rd, Oceanwide Holdings issued a major litigation announcement, and the Shanghai Branch of Bank of Beijing sued the company's overseas subsidiaries, Oceanwide Holdings and its holding subsidiary Minsheng guarantee to the court. Oceanwide Holdings International is required to repay the principal of 69.3 million US dollars (about 447.5 million yuan).
Affected by the news, Oceanwide Holdings fell again in early trading, with a price of 2.10 yuan per share as of press time, down 1.41%. It has rebounded from the lowest price of 1.91 yuan per share in nearly a decade at the end of July, but it is still hovering at a low ebb.
Bank sues, executives are warned, Oceanwide Holdings is even worse.
On the same day that Oceanwide Holdings released a major litigation announcement, according to the website of the Beijing Regulatory Administration of the China Securities Regulatory Commission, due to violations of information disclosure, four senior executives of Oceanwide Holdings, Song Hongmou, Zhang Xifang, Lu Yang, and Shu Gaoyong, were issued warning letters by the Beijing Securities Regulatory Bureau, and related violations were recorded in integrity files. The amount of outstanding compensation involved in the lawsuit reached 2 billion yuan.
According to the financial data released in the previous semi-annual report, Oceanwide Holdings lost 540 million yuan in net profit and 136.288 billion yuan in total liabilities in the first half of 2021, although it is lower than last year, but interest-bearing liabilities account for nearly half, and monetary funds are only 16.394 billion yuan. Corporate debt pressure and liquidity pressure are still huge.
According to the margin information of Oceanwide Holdings, the net repayment of the financing on September 23, 2021 was 587600 yuan, and the financing balance was 344 million yuan, down 0.17% from the previous day, setting a new low for nearly a year.
Major adverse events occur frequently, and banks demand that they be paid off in advance.
It is understood that since the second half of 2020, Minsheng Trust controlled by "pan-marine system" has continuously trampled on Wuhan Kingold Jewelry Inc 8 billion yuan "fake gold case", Zhixin 1095 "radish chapter", new China Union bond default and other events, which has become the fuse to detonate the "pan-sea system" debt problem.
The lawsuit of the Bank of Beijing is also due to the frequent recent major adverse events of Oceanwide Holdings.
The lawsuit arose because the Bank of Beijing Shanghai Branch signed a loan contract with Oceanwide International in April 2019 for a loan of US $70 million for a period of three years from the date of first withdrawal.
Due to the recent major adverse events of Oceanwide Holdings, the Shanghai Branch of the Bank of Beijing announced that the above financing was due ahead of schedule, requiring Oceanwide International to repay before September 3, 2021. The Bank of Beijing Shanghai Branch filed a lawsuit against the three companies due to the outstanding liquidation of Oceanwide International.
The return of funds has been terminated, where does Oceanwide Holdings go?
It is understood that the pan-marine system has repeatedly recovered funds through equity auctions. On July 19, 2021, Oceanwide Holdings and Wuhan Financial Holdings signed the share transfer intention Agreement of Minsheng Securities Co., Ltd., intending to sell not less than 20% of Minsheng Securities shares to Wuhan Financial Holdings.
However, the transfer of assets did not lead to the rebirth of Oceanwide holding Jedi, but suffered frequent setbacks. The deal was terminated on September 10, and after completing the transfer, Wuhan Financial Holdings sent a letter saying that it had decided to formally terminate the acquisition of Minsheng Securities.
However, a series of thunderstorms have obviously made the stake in Minsheng Securities held by Oceanwide Holdings become a hot potato. In response, Oceanwide Holdings replied that the company is actively withdrawing funds through measures such as strengthening payback, disposing of assets and introducing strategic investors to reduce the company's debt ratio.
With the passage of time, Oceanwide Holdings has less and less room to move. In the coming year, whether Oceanwide Holdings can survive the peak of debt repayment and reduce its financial burden will be the key to get out of the trough and turn losses into profits.