How much leek can be cut from Jia Yueting's equity?
Reporter Lu Xiao Beijing reported
At last, financial institutions are going to sell 300104.SZ shares.
On September 19, the company announced that the majority shareholder, Jia Yueting, held about 137 million shares of the company to be unloaded on September 14. Relevant personages on the "China Times" reporter confirmed that the release of the pledge as a trust on the disposal of stocks. In addition, Guotai Junan also announced that it would dispose of 39.54 million shares pledged by Jia Yueting in the form of frozen secondary market centralized bidding transactions within three months or so.
As financial institutions with heavy losses dispose of their shares in the Networks, Networks announced in the announcement that it may face the risk of a change in the actual controller. But in contrast, the shortage of funds is still the biggest problem of whether music network can operate normally. However, enthusiastic retail investors and hot money do not seem to care about the risks that may erupt at any time.
Pledge shares are disposed of
The 137 million shares of LTV that have been unloaded and pledged account for 3.43% of the total shares of LTV. The pledgee is China Life Trust Bank. The announcement shows that Jia Yueting carried out 7 pledges between the people's livelihood trust in July 2016 and January 2017. According to LETV, some shares may be reduced and disposed of.
Jia Yueting's stock pledge time in Guotai Junan was in June 2016. The announcement showed that the possible breach of Cathay Pacific Jun'an disposal of the matter, may lead to Jia Yueting passive maximum reduction of 0.99% of the shares of LTV.
And after the "China Times" reporter rough calculation, the two financial institutions will be dealt with by the Networks shares accounted for about 4.42% of the total shares of Networks. The shares were roughly valued at about $567 million at the closing price of $3.21 on September 19.
The pledge of LETV shares was an important means for Jia Yueting to obtain large amounts of loans. However, with the outbreak of the capital crisis of the music department, many financial institutions were damaged.
At the end of July 2016, investors such as Caitong Fund, Jiashi Fund and China Post Fund also participated in the 4.8 billion yuan increase of LTV at a price of 45.01 yuan. By the end of April 2017, the price of LETV has dropped to 30.68 yuan. The price of this music network has shrunk by more than 30%. In January 24th of this year, LETV resumed its trading price with a price of 15.33 yuan. By the end of September 19th, the price of LETV has shrunk by nearly 80%.
Prior to this, brokerage firms announced stepping on thunder.
On the evening of March 1, the announcement on Levision showed that in April 2016, Western Securities Co., Ltd. made a loan of 474 million yuan to Jia Yueting Pledge Company, which constituted a breach of contract. In addition to announcing a lawsuit against four LTV executives, such as Jia Yueting, Western Securities has prepared 439 million yuan for the impairment of the bill of lading financial assets.
In addition, Huafu Securities applied to the Beijing First Intermediate People's Court on September 1, 2017 for the deduction of Jia Yueting's 1.3 million yuan bank deposits and for the seizure of his 1.024 billion shares of the Networks due to Jia Yueting's failure to pay the principal and liquidated damages of 200 million yuan.
In fact, LTV has already announced in its announcement that all Jia Yueting's pledged repurchase transactions have touched the liquidation line stipulated in the agreement, and that all his pledged repurchase transactions have been breached. As of September 18, 2018, Jia Yueting held 1.023 billion shares, accounting for 25.63% of the total equity, of which 883 million were pledged, accounting for 22.13% of its total equity. Industry insiders told the "China Times" reporter, according to their understanding of the industry's stock pledge price is generally 3 to 4% of the pledged share price, and the liquidation line is generally about 7% of the pledged share price.
If Jia Yueting's hypothecated shares are forced to liquidate by financial institutions, there is a real possibility that the company controller will change. But compared to the controller changes, the actual operation of LETV is still a matter of funds.
The company announced that the estimated maturity of financial institutions'borrowing debts at the end of September was about $1.924 billion, putting it at risk that they would not be paid on time. At the same time, LTV also said in the announcement, so far, the non-listed system debt processing team has not repaid the existing debts of listed companies through cash, listed companies can not obtain cash support in the short term, because of the lack of funds caused by the operating difficulties of listed companies can not be effectively resolved. Previously, the size of arrears determined by LETV and related parties was 6 billion 700 million yuan.
The company also said it had the risk of default because it was unable to pay the fees as agreed in the agreement due to lack of funds. But because it did not pay the plaintiff the marketing fee, software development service fee and so on, LEVEN has been listed in the third intermediate people's court of Beijing and the court of Beijing Chaoyang District as the executed person.
In addition, LTV has repeatedly stressed the risk that its net home equity in the first half of this year was - 477 million yuan, if the company's net assets were negative for the whole year of 2018 after audit, the company has the risk of suspending the listing of stocks.
The joint and several guaranteed liability of LEVEN to LEVEN, a holding subsidiary, may also worsen its financial situation.
The company's shareholders, Chongqing Strategic Emerging Industries Lexun Special Equity Investment Fund Partnership (Limited Partnership), are required to repurchase its Lexun equity holdings by September 28, 2018, according to an announcement released by Lexun.com on September 18. The amount of repurchase is 1 billion yuan, plus 15% of annual interest. However, LETV also said that the legal effect of the other party's agreement was doubtful.
It's worth mentioning that retail investors and hot money are still enthusiastic about LTV, despite its relentless emphasis on its own risks. On Sept. 19, LTV announced that its stock trading price in September 17-19, 2018 closed three consecutive trading days deviated from the value of a total of more than 20%. Previously, the LTV network had two consecutive trading days on August 30 and 31, and three consecutive trading days from September 3 to 5, respectively, with a cumulative price increase of more than 20%.
How much leek can be cut in LETV?
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