Jilin Chemical Fiber Resumed 20 Days To Increase Debt Repayment

　　 Fixed increase fundraising 700 million "debt repayment"

In December 20th, Jilin Chemical fiber announced that the company intends to target a specific object at a price of 3 yuan per share, no more than 233 million shares, and the total amount of raised funds is not more than 700 million yuan.

What is unusual is that this fixed increase has already been locked up by institutional investors ahead of time, and it seems that there will be an increase in the "package yard". Specifically, there are 7 objects in the issue, namely the East China Sea Fund - Xinlong 14 asset management plan, huitianfu Shengshi growth double happiness 6 collection asset management plan, finance and communication Fund Management Co., Ltd., Shenzhen Chuang Yi Hongye Technology Co., Ltd., Hefei Shangcheng Plastic Industry Co., Ltd., di Rui asset management Co., Ltd., Shanghai Hao song Industrial Co., Ltd.

Due to the difference between the issue price and the market price, the active subscription of the seven organizations has attracted the doubts of the market investors: "Why are there 7 institutions subscribing, they are not coming for profit?" even more puzzling is that the fixed increase has no specific investment projects. The company is prepared to use all the net proceeds to repay bank loans and replenish the current capital. For this reason, a market person even jokes: "the organization will do" live Lei Feng "this time.

　　 Large shareholders want to "stay out"

"These organizations feel there is hope for the future of the company." Wang Qiuhong, a securities affairs representative, explained to reporters.

Financial data show that from 1 to September 2013, Jilin chemical fiber Net profit is -17668.12 million yuan. In addition, as at September 30, 2013, the total liabilities of the company's consolidated statements amounted to 3 billion 667 million 577 thousand and 400 yuan, of which short-term loans and long-term loans amounted to 1 billion 801 million 230 thousand yuan, and asset liability ratio (merger) was 90.07%, higher than the average level of the same industry.

"There are so many losses in the bad companies, and it's a good idea to add more!" "so many organizations suddenly participate actively in the company's growth. If there is no profit, no one will take part in it. There is a good reputation!" in the face of the seven institutions' early lock in the fixed share increase behavior, many investors said they were not optimistic.

Above Fixed increase scheme It also shows that there is no big shareholder in Jilin's chemical fiber group. Why do large shareholders do not participate in fixed growth? Are they not optimistic about the future development of the company?

"Big shareholders are not involved in the subscription, I am not very clear about this situation." Wang Qiuhong said it was a little difficult to answer this question.

　　 The first two increases were "defeated".

In fact, in recent years, the SFC has tighter control over the fund-raising of refinancing of listed companies. At the previous training seminar, the relevant departments of the SFC put forward specific requirements for the key points and major issues of refinancing financial audit. In principle, they did not encourage or support the funds raised by equity companies to supplement working capital or repay bank loans.

In the case of a listed company adopting a rights issue or adopting a non-public offering method, SFC The amount required for repayment of loans and supplementary liquidity shall not exceed 30% unless major shareholders participate in the subscription of shares.

But the Jilin chemical fiber fundraising will repay debt and replenish liquidity in full. Large shareholders are not involved in the subscription of fixed shares. In this case, where does the company's confidence come from?

"The company should have understood the relevant policies and helped us to make the increase, and the current market has changed. All policies need a fumbling process." Wang Qiuhong said.

What needs to be mentioned is that the previous two increases in Jilin chemical fiber failed. In April 2010, Jilin chemical fiber announced a fixed increase plan, the price is not less than 5.9 yuan / share price will not exceed 200 million shares, the amount of financing is not more than 1 billion yuan, after the environmental protection verification and other factors, the company did not declare the added material. In August 2011, the company started to increase again, and the plan raised no more than 1 billion 334 million yuan, and was eventually terminated due to the break up of the issuance price.