Recently, the news that a generation of home appliance giant Xinfei will auction equity on June 28th has triggered a lot of attention from the household appliance industry, news media, and the public. However, some media have adopted “bankruptcy liquidation” and other rigorous reports. Accurately stated, and stated in the report that Xinfei has ceased production activities and withdrew all employees. Is the current situation of Xinfei described as described in the report?
Xinfei Reorganization Manager Beijing King & Wood Law Firm responded exclusively to China National Grid: At present, Xinfei is carrying out reorganization work in an orderly manner; Xinfei is still carrying out certain business activities, and the management team has remained stable; there are three to four The domestic well-known home appliance companies showed their investment intentions for Xinfei and recently completed due diligence on Xinfei.
The reorganization work is carried out in an orderly manner
In November 2017, Xinfei, which had been in the first echelon of the domestic refrigerator market for a long time, again exposed the suspension of production. Henan Xinfei Electric Appliance Co., Ltd., Henan Xinfei Home Appliance Co., Ltd. and Henan Xinfei Refrigeration Appliance Co., Ltd. (hereinafter referred to as 'new' "Flying Company" issued a joint statement on November 1st, announcing that it has suffered sustained losses in the past few years due to market competition and declines. Although foreign shareholders have given large amounts of funds and support, they still cannot fully recover the company's market challenges. Due to pressure from the capital chain, only production activities are currently suspended. Xinfei Company applied to the Henan Xinxiang Intermediate People's Court (abbreviated as 'Xinxiang Intermediate Court') for reorganization on October 30, 2017.
On November 9th, the Xinxiang Intermediate People's Court ruled to accept the application for the reorganization of Xinfei Company. On November 20th, Beijing Jindu Law Firm was appointed as the custodian of Xinfei Company to carry out bankruptcy and reorganization.
According to the claims submitted by the creditor and the manager's review, there are currently 840 new creditors, and the total liabilities are about 2.3 billion yuan.
A staff member of Xinfei Reorganization Management stated that the current restructuring of Xinfei’s work is mainly divided into three parts: First, asset disposal. In addition to Xinfei’s equity, some inefficient assets are being disposed of. The second part is the placement of employees and the promotion is in good condition. The third is the recruitment of investors. Currently, the companies that have contacted the managers are those with relatively large brands in the industry.
According to the staff, currently there are about 20 senior executives in Xinfei’s management team, all of whom are on staff and the management team is 'very stable'. The production and manufacturing of Xinfei is temporarily stopped, and the production department has retained personnel. Doing cleaning, maintenance and maintenance work, normal business activities have been maintained, sales are mainly based on inventory sales, e-commerce is still in a normal state, and everything is normal after the sale of new aircraft. The reporter searched for Jingdong platform and found that the new refrigerator was still Some models are sold and can be purchased normally.
Regarding the placement of employees, the staff member stated that the employee placement was based on the plan of full-time buy-out. According to the provisions of the “Labor Contract Law” and the “Bankruptcy Law of the Enterprise,” the employees were fully engaged in the reorganization process. Buyout. 'We will give priority to employees’ financial compensation in the consideration paid by investors. 'The staff member stated that Xinfei had more than 5,500 employees (including regular employees and dispatched employees), June 1st. The first batch of resettlement staffing programs are in the process of implementation and the work performed is also going very smoothly. The second batch still has about 1,000 employees and is still working at Xinfei. They will cooperate with Xinfei’s reorganization work until new ones. The transfer of investors is completed. Employees have the opportunity to make two-way choices with new investors in the future.
As a business card for Xinxiang City, Xinfei has always been valued by the Xinxiang Municipal Government. Since the outbreak of the new flight crisis, the Xinxiang City Government has also paid close attention to the reorganization of Xinfei. On February 8 this year At the launch ceremony of Xinfei’s resumption of production, the leaders of the Xinxiang Municipal Government made clear their position: The reorganization of Xinfei Electrical Appliances is not only a matter for the new flyers, but also a major event for the people of Xinxiang City.
According to the aforementioned staff of the new flight manager, the Xinxiang Municipal Government very much hopes that Xinfei’s reorganization will be successful. Xinfei can be said to be a business card of Xinxiang. The Xinxiang Municipal Government regards the restructured investment of Xinfei as a very large investment attraction project. , And put forward the requirements for new investors: The first requirement is that the brand can not leave the new flying company; the second requirement is to give priority to the recruitment of the original staff of Xinfei.
Equity auction, bankruptcy liquidation, and many intentional investors
In February of this year, after New Zealand’s largest shareholder Hong Leong Asia was selected as an official investor and promised to continue to invest in Xinfei, Xinfei resumed part of its production activities on February 8. However, since then, Hong Leong Asia Failed to fulfill its capital injection commitment and announced the divestment, Xinfei was once again stuck in production.
To this end, the new flight manager formulated a reorganization plan in light of the actual situation of Xinfei Company and was approved by the new flying creditors. According to the contents of the reorganization plan, the original shareholders' equity of Xinfei Company will be fully adjusted and auctioned off. Transfer to qualified restructured investors. Xinfei Corporation maintains the legal entity qualification, and the qualified restructuring investor will hold 100% equity of Xinfei Company.
“It is now a process of implementation of a reorganization plan. The most important part of its implementation is actually the auction of the equity of Xinfei Company. ' The aforementioned staff of Xinfei Management stated that the new flight equity is the best quality asset of Xinfei. Including Xinfei's refrigerators, freezers production lines, the two main production sites of land and real estate, all of Feifei's trademarks and all intellectual property rights. 'We are auctioning this stake, in fact, is an operation that locks in the restructured investors.'
However, for the reorganization plan of Xinfei’s equity auction, some media used “insolvency liquidation” and other inaccurate, non-rigid statements in the report. The aforementioned new flight manager’s staff stated that the media’s rigorous representations were related to the reorganization work. It will cause some problems, and it will have some negative impact on the intentional investment.
Announcement issued by Xinfei Electric on June 11
On June 11th, Xinfei Electric issued a statement through its WeChat public account to respond to external doubts. The statement stated that: Xinfei Company has not been bankruptcy and liquidation, and the reorganization process of Xinfei Company is proceeding in an orderly manner. The current reorganization plan It is being carried out in an orderly manner, and fair and open recruitment of equity investors will be conducted in a fair, open, and fair manner through equity public auctions. After a successful reorganization, Xinfei will be reborn and the new Eagle will fly again.
Announcement issued by the new flight manager on June 12
On June 12th, Xinfei Management also issued the “Announcement on the Progress of Xinfei Electrical Appliances Co., Ltd. Restructuring According to the Announcement.” With the attention and support of all parties, Xinfei Electric is currently undergoing a smooth reorganization according to law. ' Announcement pointed out , 'Bankruptcy liquidation and bankruptcy reorganization are two legal concepts. The difference is very big and the nettext is confusing. ' The purpose of this open auction is to recruit qualified recapitalizers and is a public auction based on a reorganization plan. Not a passive asset judicial auction.
According to the staff member, there are already three or four domestic well-known home appliance companies inspecting Xinfei in the near future. In her view, the Xinfei brand still has great commercial value. After any investors have bought the new shares, they will It is bound to develop this brand.
The new flight manager stated in the June 12 announcement that he is looking forward to the new flight of debt and inefficient assets. He will be able to move forward lightly and return to life. Wish Xinfei welcome new shareholders, new management team, new Business philosophy, continue to introduce new technologies to the market, as always, presented quality products for consumers.
In a comment issued by Xinfei Electric on June 11th, a Xinfei dealer commented that 'selling Xinfei Electronics has been selling for more than 20 years, and many customers trust Xinfei very much and look forward to the new flyoff.'