Bankruptcy and reorganization does not mean bankruptcy in the full sense, but many media interpretations of this are somewhat mixed, and even the sensational "Brilliance Bankruptcy, BMW finished playing" headline revealed... If you have a little bit of the bankruptcy process If you understand or have a little knowledge of the company's operations, I'm afraid it won't cause such an oolong.

    The implication is: Long-term dragged down by the loss of its own business, Brilliance Group is likely to choose to proactively pierce the "abscess" and initiate the divestiture and reorganization of non-performing assets under the instruction of the supervisory unit. "There are many possibilities for reorganization. In the context of the mixed reform of state-owned enterprises, third parties can be introduced, either industrial or investment".

  Dawns Here Are Quiet

    "This matter (Brilliance Group's bankruptcy and reorganization), the public statement has made it very clear. It only involves the autonomous part of the group and does not affect Brilliance Renault." On November 23, the ruling of the Shenyang Intermediate People's Court was only past. On the 3rd day, relevant personnel of Brilliance Renault said at a communication meeting.

    On November 24, Brilliance Renault's first wide-body light passenger, Jinbei Sea Lion King, went public. When Brilliance's parent company suffered a bankruptcy and reorganization, the new car listing event was held as scheduled. It may be a coincidence or a deliberate proof: (Bankruptcy and reorganization) does not involve listed companies under the group and joint ventures with BMW, Renault, etc."

    "I saw the news of Brilliance's bankruptcy (reorganization) on TV two days ago. Everything is normal here (BMW Brilliance), and I don't feel any changes." An employee of the Tiexi plant of BMW Brilliance told the Economic Daily-China Economic Net reporter "We are still building a new factory, and the electric car iX3 has recently been put into production (on the market)."

    Compared with business as usual for the joint venture, the operation of Brilliance Group has not been as "chaotic" as outside speculation. "Almost three years ago, the group established a special committee for loss-making businesses. The leaders of Zhonghua and Jinbei were among them. The group took the lead and contacted and reported on the situation with the provincial SASAC many times." A middle-level employee of Brilliance Group revealed Said, "When the news of bankruptcy (reorganization) comes out, people outside may be surprised. We have been mentally prepared for this."

    According to the news learned by the reporter from Economic Daily-China Economic Net, before the Shenyang Intermediate People’s Court ruled on the reorganization application of Brilliance Automobile Group Holdings Co., Ltd. (brilliance group for short), Liaoning SASAC and Brilliance Group have established relevant working groups to discuss for many years The loss of Brilliance Group's independent business units, namely China, Jinbei and Huasong business units. In addition, the Liaoning Provincial State-owned Assets Supervision and Administration Commission has made provisions for bad debts in the financial process (in accordance with financial standards) in the last three years for the losses of Brilliance Group.

　　What is bankruptcy reorganization

    The reason for the bankruptcy and reorganization of Brilliance Group was that in late October, the 1 billion yuan private placement bond issued by Brilliance Group only paid interest and failed to pay the principal. According to the judicial ruling of the Shenyang Intermediate People's Court on November 20: Accepting creditors' application for reorganization of Brilliance Group, it is determined that Brilliance Group has entered the bankruptcy and reorganization stage.

    Bankruptcy and reorganization does not mean bankruptcy in the full sense, but many media interpretations of this are somewhat mixed, and even the sensational "Brilliance Bankruptcy, BMW finished playing" headline revealed... If you have a little bit of the bankruptcy process If you understand or have a little knowledge of the company's operations, I'm afraid it won't cause such an oolong.

    According to the interpretation of the "Enterprise Bankruptcy Law of the People's Republic of China", "If an enterprise legal person cannot pay off its due debts, and its assets are insufficient to pay off all debts or are obviously insolvent, the debts shall be cleared up in accordance with the provisions of this law"; "The debtor may submit an application to the people's court Application for reorganization, settlement or bankruptcy liquidation".

    BMW Brilliance, Brilliance, Brilliance Bankruptcy

    Creditors choose bankruptcy reorganization rather than bankruptcy liquidation applications, as Xinhua News Agency said in a report: “Brilliance Group has the bankruptcy reasons stipulated in the corporate bankruptcy law. But at the same time, the group has the value and possibility of salvation, and it has the necessity and necessity of reorganization. "Feasibility", "The group is expected to be reborn after the reorganization, and try its best to recover the losses of creditors."

    According to public information: As a state-owned enterprise in Liaoning Province, Brilliance Group directly or indirectly controls and participates in four listed companies, and through its listed company Brilliance China and BMW jointly established BMW Brilliance. There are three independent brands of Zhonghua, Jinbei and Huasong, and two joint venture brands of BMW Brilliance and Renault Brilliance. Among them, BMW Brilliance is still a stable source of profits in the future, and it will continue to launch new products and expand its scale.

    According to the analysis of sources, Brilliance Group’s bankruptcy and reorganization clearly stated that it only involved the “group independent sector”. However, judging from the actual operation of Zhonghua, Jinbei and other businesses, it includes the claims of private equity, suppliers and other creditors. I am afraid that it will be difficult to achieve in the short term. "Recovering losses may be put on hold in various processes."

    At the same time that the news of the bankruptcy and reorganization of Brilliance Group came out, BMW Brilliance, as the group's "most sustained, stable and substantial revenue" joint venture company, was once involved in the whirlpool of public opinion: related to "BMW Brilliance Change", Rumors of "BMW paid for the equity purchase in advance" appeared in the media. However, according to the report of the Economic Daily-China Economic Net, the above “trivialities” are not true, and BMW Brilliance is still operating “business as usual”.

    According to sources, the relevant authorities in Liaoning Province have been "urging rectification" for Brilliance Group's self-owned business that has been losing money over the years. "A few years ago, there were discussions on the divestiture of loss-making businesses such as Zhonghua and Jinbei. The Shenyang City (Intermediate People's) Court accepted the bankruptcy (reorganization) application within a short period of time this time; and Brilliance did not reach the “poor unresolved” time, because the 1 billion corporate debt was delayed, it became bankrupt. ?".

    The implication is: Long-term dragged down by the loss of its own business, Brilliance Group is likely to choose to proactively pierce the "abscess" and initiate the divestiture and reorganization of non-performing assets under the instruction of the supervisory unit. "There are many possibilities for reorganization. In the context of the mixed reform of state-owned enterprises, third parties can be introduced, either industrial or investment". Based on this, BMW Brilliance will not be affected in the reorganization of the group. As for the delivery of BMW's increased shares in BMW Brilliance, according to relevant national policies, it will not "land" until 2022.

    In order to protect BMW Brilliance from the impact of this reorganization, Brilliance Group has taken great pains. According to public information, the 1.535 billion shares of Brilliance China (a subsidiary of Brilliance Group and the Chinese holding representative of BMW Brilliance) were transferred to Liaoning Xinrui Automobile Industry Development Co., Ltd. (hereinafter referred to as Liaoning Xin), which was just established in September this year. Rui, is 100% wholly-owned by Brilliance Group). As a result, Brilliance Group no longer directly holds shares of Brilliance China.

    Subsequently, Liaoning Xinrui signed an agreement with a third party to pledge all the equity of Brilliance China held by it to the lender as the "collateral quality of loan financing." Some analysts pointed out: In this case, Brilliance Group went bankrupt and reorganized, even The creditors were unable to dispose of the equity of Brilliance China due to the related debt claims caused by the bankruptcy liquidation. Of course, this series of "operations" of Brilliance Group has also triggered many accusations in the financial and bond industries.