Follow-up of the Duo Duo incident: Reorganization of the Sichuan factory to block creditors' opinions are not uniform

September 05, 2019

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Recently, the Secretary-General of the Shenzhen Semiconductor Lighting Industry Development Promotion Association came to Chengdu to communicate with the local government departments and relevant creditors, and negotiated the “Shenzhen Multi-Reorganization” model to solve the problem of Sichuan Duo Duo Li, hoping to get the government and Support for the company.

The reorganization plan of Shenzhen Duo Duo Li is: the creditor will take more shares of the debt after the reorganization of the company, according to the proportion of the corresponding shares, while restructuring the organizational structure. If the restructured company is profitable, it will pay dividends according to the shares of the creditors.

However, on the issue of the reorganization of Sichuan Duo Duo, the opinions of the three creditor companies were not uniform.

The relevant person in charge of Yuhe Company, one of the creditors, told the reporter: "As long as the money is paid to us, their company will reorganize and reorganize, and it is not a way to kill it."

Another creditor, Sichuan Changrong Construction Engineering Co., Ltd., clearly stated that it did not agree to the restructuring; the third creditor was Far East International Leasing Co., Ltd., and the responsible person of the company refused to discuss the matter.

In this regard, an industry insider who does not want to be named believes that whether or not to persuade creditors to accept “debt-to-equity swaps” depends mainly on their financial situation. If the company’s own funds are very tight and urgently need money, then talk to him about “debt. It is more difficult to convert shares.

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