Debt 8 billion of music network begins to deal with delisting risks
In November 19th, 300104.SZ convened the fourth temporary shareholders' meeting in 2018. At the meeting, Le Video Network Financial Director Zhang Wei revealed that by the end of September, Le Video Network had about 8 billion yuan of interest-bearing debt including loans from financial institutions. Bai Bing, deputy director of music network, said that there was no new progress in the recovery of the arrears of related parties by LETV.
In the case of operating losses, high liabilities, negative cash flow and extreme financial constraints, the risk of delisting from the market is also increasing. It is rumoured that LETV is doing the corresponding disposal and arrangement of delisting. Nevertheless, people concerned with Le Video Network clarified to First Financial Journalist that the company has been making arrangements to deal with the delisting risk.
Small and medium-sized shareholders are very concerned about the debt problem of LETV. Zhang Wei said that the company is currently facing great debt pressure, as of the end of September, listed companies should pay more than 5 billion yuan for suppliers and service providers in operating liabilities. The company has been making continuous efforts to negotiate with suppliers and other creditors on debt extension and repayment schemes to create conditions for the company's production and operation.
Among them, about 1.9 billion yuan of loans and interest debts between China and Thailand have constituted a breach of contract because of its failure to repay them on time, and subsequently China and Thailand may start judicial proceedings to claim rights. Zhang Wei said that the current cash pressure of Le Video Network is very tense, facing many historical problems can not be effectively and timely solved.
"Recently, facing a large number of suppliers coming to the company to ask for repayment of debts, we have tried our best to appease them, including the support of the local government's stabilizing forces. We understand the creditors'mood very well. We are also looking for various ways of seeking help, including negotiating with suppliers, seeking government help, policy support, etc., but limited to the public. At present, there is no effective and complete plan for the cash flow pressure and more and more maturity debts of the company. The company is also actively recovering arrears from related parties. It also expects that the government, shareholders and creditors can give more support and understanding to the current management of the company to help the company overcome difficulties. Zhang Wei said.
One of the contents deliberated by the shareholders'meeting is the Bill on Adjusting and Recognizing the Types of Daily Related Transactions in 2018 and the Scope of Related Persons. Bai Bing said that after the company's board of directors reconsidered and adjusted, the bill did not involve revising the daily linked transaction quota in 2018. On the premise of ensuring the company's normal and sustained production and operation activities, it played a synergistic role between the company and its affiliates to promote the company's business development, without harming the interests of listed companies.
Regarding the recovery of related party accounts receivable, Bai Bing said that at present, the negotiation with the related party debt processing group is still on the related debt issue, because the problems of related party transaction arrears and maturity debts in the past have caused tremendous pressure on the company's operation and management, and the company's overall capital arrangement still exists. Greater difficulties, extremely tight cash flow, "there is no new progress on the debt issue with the related parties" is still in the process of negotiation.
Some time ago, LETV changed its registered capital. In this regard, Bai Bing said that the increase in registered capital of the company was due to the completion of the 2016 equity allocation, not the increase in registered capital caused by financing. "There is no capital increase plan for listed companies at present."
Because of the irregular operation of Jia Yueting, the founder of LOVEN, there is a guarantee risk for LOVEN to undertake the repurchase of sports equity. According to the announcement on Nov. 9, if all the new investors of Lotus Sports A+Round and B Round filed arbitration applications for listed companies, preliminary calculation shows that Lotus Sports Network, Lotus Interactive and Beijing Pengyi may bear the repurchase responsibility of less than 11 billion yuan.
In this regard, Bai Bing said that the legal effect of the repurchase liability of Le Video Network is questionable. In view of the guarantee cases such as Lexus Sports, Lexus Networks will actively respond to the lawsuit, "in order to avoid the company to assume the responsibility of guarantee", and protect the interests of the company and its small and medium-sized shareholders. If the company eventually loses the lawsuit, it still has the right to pursue and prosecute the relevant responsible persons and related companies for the repurchase, litigation liability and debt that may be incurred by listed companies.
On November 8, Le Video once again issued the "Suggestive Notice on the Risk of Suspension of Listing of Stocks". The announcement said that the company's net assets attributed to shareholders of listed companies from January to September 2018 were 365 million yuan, and the net profits attributed to shareholders of listed companies were 1.489 billion yuan. If the net assets of the company in 2018 are negative after audit, the company has the risk of being suspended from listing.
As of November 7, 2018, Jia Yueting owned 98,629.77 million shares of Le Video Network, accounting for 24.72% of the company's total equity, of which 86,885,877,000 shares had been pledged, accounting for 21.78% of the company's total equity; all the shares held by Jia Yueting were frozen and frozen on a waiting basis. As of Nov. 7, 2018, Jia Yueting's shares in Le Video Networks were 37.968 million shares less than those held on June 30, 2018. According to Jia Yueting's previous e-mail reply, his stocks disposed of by the judiciary were used to repay debts.
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