Since the beginning of this year, bond market defaults have occurred frequently. Wind information shows that there were 31 bond defaults in the first seven months of this year, with a total bond balance of 32.127 billion yuan, involving 16 issuers. In August, it has been in the forefront for a long time. On the LeTV network, a private debt default occurred, and '15 LeTV 01' also became the first default bond this month.
On August 4th, LeTV announced that as of August 3, it failed to pay the remaining principal and interest of '15 LeTV 01', totaling 80.3 million yuan. In addition, LeTV's first-half performance in the first half of this year was 1.1 billion yuan. And the financial institutions' borrowing debts that are due to expire by the end of August are estimated to be about 1.843 billion yuan. The failure to pay 80.30 million yuan of private debts, LeTV's recent debt repayment pressure can be seen.
80.3 million yuan bond principal and interest is unable to pay
Debt pressures are coming in August
On August 4th, LeTV announced that LeTV Information Technology (Beijing) Co., Ltd. 2015 non-public issuance of corporate bonds (the first phase) should be redeemed on August 3, 2018, subject to the company’s operation, the capital chain is tight. The company failed to meet the principal and interest of the bonds as scheduled, and the company would like to extend its most sincere apologies to the holders of the '15 LeTV 01'.
According to public information, '15 LeTV 01' was issued in October 2015 with an issue amount of 1 billion yuan and a bond maturity of 3 years (with the end of the second year, the issuer raised the coupon rate option and the investor's option to sell back). The remaining principal of the bonds was 73 million yuan, and the current coupon rate was 10.00%. LeTV was required to pay the redemption. The interest rate was 80.3 million yuan. As of August 3, 2018, LeTV failed to complete the redemption. Distribute distribution.
Regarding the reason why the bond failed to be paid on time, LeTV.com said that the company is currently caught in the whirlpool of public opinion, operating difficulties, the controlling shareholder's breach of the loan commitment and the huge amount of related party debts can not be recovered, resulting in extremely tight company funds, which hindered the normal development of the company's business. In addition, after the outbreak of the LeTV financial crisis in July 2017, the company faced severe financial constraints, production and operation were once stagnant, and at the same time trapped a large number of employees leaving the company, a large number of suppliers arrears and financial institutions loan maturity.
LeTV.com said that the company's main business is still recovering, but its own operating cash flow returns can not cover the company's debt repayment, and the company's current credit status has been unable to effectively complete the financing work. As of now, the major shareholder and its associated The owed debt solution is still being negotiated with the relevant parties. In summary, for the payment of the bond, LeTV has not yet formed an effective funding arrangement.
In addition, following the '15 LeTV 01', the '15 LeTV 02' will also be redeemed in September this year. In the case of LeTV's operating environment continues to deteriorate, the risk of default of '15 LeTV 02' should not be underestimated. At present, LeTV's debt types include financing loans, operating liabilities and non-operating liabilities. Among them, the debts of financial institutions that are due to expire by the end of August are estimated to be about 1.843 billion yuan, accounting for more than 9% of the company's total liabilities.
In response to the company's financial risks, LeTV said that the company's management is currently trying to solve the operational difficulties faced, to improve the company's cash flow and supply and marketing system by improving business operations; focusing on coordinating related parties to repay the listing by cash or assets The company's arrears; at the same time actively negotiate with the relevant financial institutions for loan extensions, renew loans; seek third-party capital increase to solve the financial pressures and other solutions currently facing the subsidiary.
In April of this year, LeTV.com announced that in order to meet the needs of the company and its subsidiaries for production, operation and business development, the company applied for a comprehensive credit line of no more than RMB 5 billion from banks and other financial institutions. However, LeTV did not disclose it again. The specific circumstances of the credit.
In the first half of the year, the loss was about 1.1 billion yuan.
Has planned 600 million yuan to buy wealth management products
On August 3, LeTV.com released its debt default announcement. Last week, LeTV's share price has been falling. As of August 3, LeTV.com closed at 2.43 yuan/share, and the year-to-date decline has reached 84.15%. The weighted stocks with the highest market value in the market, the current market value is less than 10 billion yuan, it is embarrassing.
In addition to the news of the bond default, LeTV also disclosed that its stock was suspended from listing. On July 14, LeTV released its 2018 semi-annual results forecast, which was attributed to the listing from January to June this year. The net profit of the company's shareholders is a loss of 1.105 billion yuan to 11.10 billion yuan. Based on this, LeTV's net assets attributable to shareholders of the listed company on June 30, 2018 will be negative.
According to the relevant provisions of the "Shenzhen Stock Exchange GEM Listing Rules", in the listed company's 'financial financial accounting report shows that the audited net assets at the end of the year is negative', the Shenzhen Stock Exchange may decide to suspend the company's stock listing. It is also because Therefore, LeTV will face the risk of suspension of listing.
Then, how does LeTV have a loss of 1.1 billion yuan in the first half of this year? According to LeTV, its continued strong financial crisis in the first half of this year, the liquidity of the company, the reputation and credibility of the company are still in a serious negative whirlpool In the first half of 2018, the company's terminal revenue, advertising business income, membership and distribution business income showed a significant decline compared with the same period of the previous year, resulting in operating losses of about 1.1 billion yuan in the first half of the year.
However, at the end of April this year, LeTV.com issued the 2018 annual financial announcement, saying that the board of directors agreed that the company should use no more than 600 million yuan of idle self-owned funds to purchase bank wealth management products in 2018. In this regard, the sponsor institution Sino-German Securities issued verification opinions. It is said that, in view of LeTV's outstanding suppliers' arrears and involving many unexecuted litigation cases, the sponsors can implement the Leynet's use of idle self-owned funds to purchase wealth management products and the company's business operations. The impact is reserved.
That is to say, just three months before the bond default, LeTV has 600 million yuan of 'idle own funds' financial plan. Under the operating loss of 1.1 billion yuan and the pressure of capital, the financial plan has not ended. .