Unable to pay off due debt Tongfeng Electronics controlling shareholder filed for bankruptcy liquidation

Published: Jul 06, 2020 08:51 (GMT+8)

SMM: Anhui Tongfeng Electronics Co., Ltd. (hereinafter referred to as "the Company") received the Civil order No. 6 of Anhui Tongling Intermediate people's Court (2020) Wan 07 transferred by the controlling shareholder Anhui Tongfeng Electronics Group Co., Ltd. (hereinafter referred to as "Tongfeng Group") on July 2, 2020. It was learned that Tongfeng Group's creditor, Tongling Guofa Venture Capital Co., Ltd. (hereinafter referred to as "Guofa Venture Capital"), on the grounds that Tongfeng Group was unable to repay its maturing debts and obviously lacked solvency, apply to the Intermediate people's Court of Tongling City, Anhui Province for bankruptcy liquidation of Tongfeng Group. The Intermediate people's Court of Tongling City, Anhui Province accepted the case and ruled as follows: accept the bankruptcy liquidation application of Tongling Guofa Venture Capital Co., Ltd. on Anhui Tongfeng Electronics Group Co., Ltd.

The announcement shows that on July 3, 2020, Tongfeng Electronics received a letter from Guofa Venture Capital, the applicant for the bankruptcy liquidation of Tongfeng Group, to Tongfeng Group, which informed that in view of the fact that Tongfeng Group is a leading private enterprise in Tongling and a representative enterprise of copper-based new materials industry, as the applicant for the bankruptcy liquidation of Tongfeng Group, Guofa Venture Capital will actively promote the bankruptcy reorganization of Tongfeng Group under conditional conditions. The type of Guofa Venture Capital Company is a limited liability company (wholly state-owned), which is a 100% holding enterprise in the Management Committee of Tongling Economic and technological Development Zone.

Impact analysis

1. At present, the bankruptcy reorganization of Tongfeng Group is only a preliminary arrangement, and specific plans and plans have not yet been put forward, and there is still uncertainty about whether the bankruptcy reorganization can be successful. The company will pay attention to the progress of the above matters and fulfill the obligation of information disclosure in a timely manner in accordance with relevant laws and regulations.

2. After verification, as of the date of disclosure of this announcement, there are no non-operating capital exchanges, occupation of non-operating funds, illegal guarantees and abnormal asset transactions between the Company and Tongfeng Group that infringe upon the interests of listed companies.

3. As of the date of disclosure of this announcement, Tongfeng Group holds a total of 94561280 shares of the Company, accounting for 16.76% of the total share capital of the Company, and the proportion of its shares held by the Company is pledged accounting for 99.94% of its total shareholdings, and the proportion of judicial freezing and waiting for freezing accounts for 100% of its total shareholdings. There is still some uncertainty about whether the follow-up disposal of the bankruptcy of Tongfeng Group will cause the change of the actual control right of the company.

4. The company and Tongfeng Group are different subjects, have independent and complete business and independent management ability, and are independent from the controlling shareholders in terms of business, personnel, assets, institutions, finance, etc. The bankruptcy procedure of Tongfeng Group will not affect the production and operation of the company, and all the production and operation of the company is normal at present.

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