The Reorganization Plan Was Rejected By The Court.

In the evening of August 26th, the bird announced that the company received the announcement and civil ruling of the Quanzhou intermediate people's Court on August 24th. It ruled that the Limited by Share Ltd administrator would reject the application for approval of the draft reorganization plan and terminate the Limited by Share Ltd reorganization process, declaring the bankruptcy of fortune bird Limited by Share Ltd.

In addition, in August 12th, fortune bird announced that in August 9th, the stock exchange sent a letter to the company to inform the company that the final listing date of the company's shares was August 23rd, and the listing status of shares was cancelled at 9 August 26th. And in the previous July 31st, the birds also issued a notice that the company is in bankruptcy reorganization, according to the progress of the reorganization of bankruptcy reorganization plan.

After the bankruptcy and delisting of the rich birds, the previous performance has been "down and down". Up to now, two of the three bonds issued by rich birds have already suffered substantial breach of contract, involving 2 billion 100 million yuan in principal, and then very few company information. According to the report issued by Guotai Junan in February 2018, there is a large amount of violation of external guaranty for fortune birds and their subsidiaries. At least 4 billion 900 million yuan assets are likely to be uncollectible.

Listing for six years, suspension for three years

According to public information, the bird of wealth was founded in 1991 in Shishi, Fujian province (Quanzhou city is a county level city). In 1995, the Limited by Share Ltd was founded. After the integration, rich birds become a modern enterprise that integrates the development, production and sale of shoes and garments. In 2012, the company became the third largest manufacturer of business casual shoes and the sixth largest brand shoe product manufacturer in the country. In 2013, the company was listed on the Hongkong stock exchange.

It is worth noting that in the six years of the Hong Kong stock market listing of rich birds, nearly three years spent in suspension. In September 1, 2016, the lucky bird announced the suspension. The reason given at that time was that "extra time needed to complete the compilation of certain information for the interim results" was completed. Meanwhile, the board meeting was postponed.

For investors, waiting for three years, and so on is a delisting notice.

According to the company's previous reports, the net profit of rich birds has experienced double-digit growth before listing in 2013. In 2011 -2013, the net profit of rich birds increased by 113.79%, 27.47% and 37.13% respectively. However, after the listing, fortune and bird declined. In 2014 -2016, the net profit of the company was 450 million yuan, 390 million yuan and 160 million yuan respectively. In the first half of 2017, the net profit of fortune bird turned to 10 million 887 thousand and 300 yuan. Since then, there has been no renewal of fortune birds.

Since 2015, the operation of rich birds has been on the decline. In this regard, rich birds said, mainly around 2015 before the footwear industry itself is affected by the development cycle, coupled with the rapid development of e-commerce, with the advantages of safety, convenience and relatively low cost, online sales have a certain squeeze on traditional offline sales.

Insiders believe that the decline of fortune birds after listing is closely related to diversified investment and poor financial management.

In fact, rich birds had received the "warning" of the Stock Exchange last year, indicating that if the company failed to reach a resumption of business conditions in July 31, 2019 and resume the trading of shares, the exchange would recommend the listing committee to cancel the listing position of the company. In July 31st of this year, fortune bird had announced that the company was undergoing bankruptcy reorganization, and the resumption plan would be arranged according to the progress of bankruptcy reorganization.

A substantial breach of the two bonds and a huge debt ceiling.

Rich birds issued three bonds, 14 rich birds 800 million yuan, 16 rich birds SCP001 400 million yuan, 16 riches and 01 01 yuan. Up to now, "16 riches and honour 01" and "14 rich birds" two bonds have substantially defaulted. Among them, "14 rich birds" appeared in April 23, 2018 substantive breach of contract, the main underwriter is Guotai Junan.

According to the report issued by Guotai Junan in February 2018, the assets of the fortune birds at least 4 billion 909 million yuan may not be recovered, including 165 million yuan in currency capital, 200 million yuan in accounts receivable, 200 million yuan in inventory, 4 billion 229 million yuan in other receivables, and 115 million yuan in fixed assets.

At present, the total debts of the birds are about 3 billion yuan, including 800 million yuan and 14 yuan of the principal value of the "14 riches and birds", and the corresponding principal interest is 1 billion 300 million yuan and the corresponding interest, the bank loan is about 500 million yuan, and the other operating liabilities are about 300 million yuan.

In March 1, 2018, after the resumption of "14 riches and birds" resumed, the bond market price dropped to 8.5 yuan on the two level market, with a face value of 100 yuan. In April 2018, the rich bird said that due to the large amount of external guarantee and capital lending in the early stage of the company, the related payments could not be recovered on time, and could not repay the principal and interest of the "14 riches and birds" due to maturity, which resulted in substantial breach of the bonds.

As a trustee of creditor's rights, in July 26, 2018, Cathay Pacific Securities applied to the Quanzhou intermediate people's court for the revaluation of fortune birds. However, in May 9th of this year, the proposed restructuring plan was not passed by bondholders.

It is worth mentioning that after the death of Lin Guoqiang, one of the founders of fortune bird, after the death of Lin Guoqiang in June 25, 2017, his children gave up their inheritance rights in order to avoid huge debts, which also led to many speculation about the financial situation and operating conditions of rich birds.