Shandong Ruyi "18 Ruyi 01" Breach Of Contract: Zero Information Disclosure "Tricks" To Reduce Impact

"18 Ruyi 01", or breach of contract.

The reporter of 21st century economic report exclusively learned that September 18 is the due date of the resale of "18 Ruyi 01". However, as of the morning of September 21, the holders of "18 Ruyi 01" have not received the bond interest and resale money.

According to the data, the issuance scale of "18 Ruyi 01" is 1.5 billion yuan, with a five-year term and a coupon rate of 7.9%. The issuer's option to adjust the coupon rate and the investor's option to sell back at the end of the second and fourth year are attached. On September 18, 2020, "18 Ruyi 01" will be exercised for the first time.

It is worth mentioning that Shandong Ruyi, the Issuer on the public platform, did not issue any announcement on the repurchase of the bonds before the repurchase date.

According to the 21st century economic report, the reporter exclusively learned that Shandong Ruyi turned the "18 Ruyi 01" resale announcement to the private placement platform for disclosure, and had previously negotiated with investors not to sell back.

The reporter of 21st century economic report found that the announcement of "18 Ruyi 01" is still fixed in the 2019 annual report released on July 21 this year.

As a public offering debt, Shandong Ruyi turned "18 Ruyi 01" to private platform for information disclosure. This kind of "trick" also exposed the embarrassing situation of Shandong Ruyi.

A breach that you don't want to admit

For Shandong Ruyi, it has always been difficult to admit the breach of contract.

As early as March 16 this year, the SSE announced that it was the interest payment day of "19 Ruyi technology mtn001". As of the end of the day, Shandong Ruyi has not received the interest payment funds paid by Shandong Ruyi, so it is temporarily unable to carry out the interest payment of the bonds on behalf of the issuer.

Although it failed to pay the interest on the day of cashing, Shandong Ruyi did not want to admit "breach of contract".

Subsequently, Shandong Ruyi announced on the evening of March 17 that the company and all the holders reached an interest deferred payment agreement, stipulating that the current interest of "19 Ruyi technology mtn001" would be postponed for three months to June 15, 2020, and the interest of funds payable during the period was calculated according to the annualized 7.5% interest rate of the current bond, and promised to complete the interest payment of the current bond in 2020 as scheduled in the agreement.

At the same time, Shandong Ruyi said that the previous holder meeting had agreed that all the holders would collect the interest of "19 Ruyi technology mtn001" in 2020 through off-site means, while the holder recognized that "19 Ruyi technology mtn001" failed to complete the payment of interest in 2020 through the channel of Shanghai clearing house, which would not constitute a breach of contract.

Three months later, Shandong Ruyi still couldn't get the 75 million interest.

In June, Shandong Ruyi announced that the lead underwriter of "19 Ruyi technology mtn001" held the second holder meeting of "19 Ruyi technology mtn001" on June 12, 2020. The meeting deliberated on three motions including "19 Ruyi technology mtn001" interest re extension in 2020 and other related matters, all of which were unanimously passed by all the holders.

This time, the interest of "19 Ruyi technology mtn001" will be postponed for another six months to December 15 this year.

This time, when the "18 Ruyi 01" is approaching, Shandong Ruyi directly turns the information disclosure to the "private placement platform", and there is no more news in the public market.

But the final result is still a breach of contract. I don't know what Shandong Ruyi will do this time?

After all, the corporate bonds issued in the exchange market are not as good as the medium-term notes between banks. After finishing several banks, they can negotiate the rollover perfectly to avoid default. The holding institutions of "18 Ruyi 01" are diverse, and the negotiation of extension is a difficult problem.

"At the moment, the company has nothing to say." According to the reporter, the 21 century early sale holder told the reporter that it had returned to the market on September 18.

Frequent downgrades

In March this year, Dagong international adjusted the credit rating of Ruyi in Shandong Province to AA -, while the rating outlook was adjusted to negative, "17 Ruyi technology mtn001", "18 Ruyi 01" and "19 Ruyi technology mtn001" were adjusted to AA -.

Dagong International believes that the legal and financial risks faced by Shandong Ruyi are rising, and the short-term debt repayment pressure is great, and the refinancing ability is limited, and the debt repayment ability is reduced.

Moody's, an international rating agency, has also downgraded Shandong Ruyi's corporate family rating (CFR) from "caa1" to "caa3" in its previous rating report, and lowered the rating of senior uncollateralized bonds issued by Shandong Ruyi guarantee and Shengmao Holding Co., Ltd. from "caa2" to "CA"; the company's rating outlook remained "negative".

In fact, this private enterprise in Shandong Province, which was called "LVMH of China Version" by the outside world, has enjoyed a great reputation.

Data shows that in the past decade, Shandong Ruyi has made more than 40 billion yuan of global mergers and acquisitions. With the help of overseas M & A, Shandong Ruyi has controlled four listed companies worldwide, including Ruyi group, which is listed in A-share market, lippon holdings, which is listed in Hong Kong stock market, renown of Japan and SMCP of French fashion group.

Success is nothing but defeat. Now Shandong Ruyi is also experiencing the liquidity crisis after radical M & A.

As early as July last year, there was a document circulated in the market that Jining Central Branch of the Central Bank of China sent a letter to several local banks to understand the operation and risk situation of Ruyi in Shandong Province.

Since September last year, Shandong Ruyi has been included in the list of Executees for many times, and the shares of Ruyi group, a listed company under the company, are also frozen and waiting to be frozen.