On [specific date], the "Zibo Daily" published an article titled "Zibo: Reviving Bankrupt and Reorganized Enterprises from the Ashes." The article summarized the achievements made by the courts in Zibo city in the field of bankruptcy reorganization since [specific year]. The article stated that the relevant data from the courts in Zibo city in the field of bankruptcy reorganization "far exceeded the national average level of courts during the same period."

The report highlights the bankruptcy restructuring case of Qixiang Group.

This case is indeed quite interesting and worth a read.

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When the city gate catches fire, the fish in the moat suffer.

Qixiang Group, officially known as "Zibo Qixiang Petrochemical Group Co., Ltd.", is a leading enterprise in the field of chemical new materials in Zibo City. Its subsidiary, Zibo Qixiang Tengda Chemical Co., Ltd., was listed on the Shenzhen Stock Exchange on [specific date].

In [specific month and year], Cedar Holdings acquired a [specific percentage]% stake in Qixiang Group for approximately [specific amount] billion yuan, thereby gaining control of Qixiang Tengda.

At that time, Cedar Capital was at its peak, spending billions on external acquisitions, with the slogan: "In the next five years, Cedar Holdings aims for three trillions: trillion in sales, trillion in assets, and trillion in market capitalization..."

However, before the year was out, Cedar "exploded." The state of Cedar can be roughly understood by looking at the headlines of related media reports: "Product risk control completely 'naked,' billions in underlying assets virtually nonexistent, transferring billions of funds through fake state-owned enterprises"...

According to media statistics, the total liabilities of Cedar Industrial Group amounted to billions of yuan at the end of the year. Almost all of the equity in Cedar Industrial Group's core subsidiaries, totaling several companies, including Qixiang Group, has been pledged.

The shares of Qixiang Group have been entirely pledged by Cedar to Shandong Trust. Additionally, Cedar has used Qixiang Group as a guarantor for multiple financing activities. The shares of Qixiang Group have been subjected to multiple rounds of seizures by courts in more than a dozen provinces.

As a creditor, Shandong Trust asserted its rights with the Zibo Intermediate Court in Shandong. The court allocated Qixiang Group's shares to Shandong Trust. Considering the development of the enterprise and the fact that Shandong Trust is merely an investment company, the Zibo Municipal Committee and Municipal Government approached the robust Shandong Energy Group, hoping they would take over the operations.

A responsible official from Shandong Energy Group publicly stated:

Qixiang Tengda, a listed company in Zibo City, has consistently ranked first in market value, revenue, profit, tax contribution, and export earnings for seven consecutive years. It is a high-quality listed company that also aligns with the Shandong Provincial Party Committee and Provincial Government's requirements for the direction of Shandong's energy industry.

Shandong Energy Group has decided to invest hundreds of millions of yuan to acquire the corresponding creditor's rights of Shandong Trust towards Snow Peak, aiming to complete the controlling stake through court enforcement procedures.

However, this seemingly logical procedure encountered issues during its actual implementation. The Cedar debt involved multiple regions across the country, and during the execution process, insurmountable obstacles were encountered.

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Execution to Bankruptcy, "Breaking the Circle and Cutting the Chain" Becomes a Typical Case

Ideals are full, but reality is "hard to execute." What should the court do?

The Zibo Intermediate Court has decided to shift its approach and pursue the path of corporate bankruptcy reorganization.

A significant feature of bankruptcy reorganization is the ability to consolidate and simplify debts, cutting through the complexity with swift action—Shandong Trust applied to the Zibo Intermediate Court for the bankruptcy reorganization of Qixiang Group.

An interesting scene unfolded as Qixiang Group refused to accept—we are not bankrupt.

At this time, Cedar, which controls Qixiang Group, seems to have other ideas, such as selling Qixiang. Therefore, Qixiang Group has raised objections to the Zibo Intermediate Court's ruling for the bankruptcy reorganization of Qixiang Group. The main points of Qixiang Group are as follows: The creditor, Shandong Trust, holds shares pledged by Qixiang Group and can realize its claims by disposing of these shares, making it completely unnecessary to demand bankruptcy reorganization from Qixiang Group. Moreover, Qixiang Group is not insolvent. If it is not insolvent, how can a bankruptcy reorganization be ruled? As a listed company, forcibly declaring bankruptcy without meeting the bankruptcy conditions would have a negative impact on both the enterprise and the market.

Facing the objections raised by Qixiang Group, the Zibo Intermediate Court also provided an explanation. The general viewpoint of the Zibo Intermediate Court is: Whether Shandong Trust is qualified to apply for the bankruptcy and reorganization of Qixiang Group depends on three issues: 1. Whether the debt relationship is established; 2. Whether the debt performance date has arrived; 3. Whether the debtor has fully repaid the debt. The debt relationship between Shandong Trust and Qixiang Group is clear, and since the debt is due and cannot be repaid, Shandong Trust certainly has the qualification to apply for reorganization and repayment. As for whether Qixiang Group can be adjudicated bankrupt, the Zibo Intermediate Court also pointed out that there is a clear legal interpretation for such situations where the book assets exceed the liabilities: If the assets cannot be liquidated, the debts cannot be repaid, or the debts cannot be repaid through compulsory enforcement by the People's Court, bankruptcy reorganization can be legally conducted.

The Zibo Intermediate Court ruled that Qixiang Group has met the conditions of being unable to repay its due debts and is evidently lacking in solvency, thus qualifying for bankruptcy. Additionally, "resolving Qixiang Group's debt issues through restructuring is conducive to leveraging its past management strengths, maintaining the stable operation of the listed company, aligning with the legislative intent of bankruptcy laws and market operation principles, and is beneficial for maximizing the protection of the legitimate rights and interests of stakeholders. Therefore, Qixiang Group is feasible for restructuring."

Consequently, the court ruled that the new materials company under Shandong Energy Group, as the restructuring investor, should pay a consideration of billions to the bankruptcy administrator to acquire a certain percentage of equity in Qixiang Group (according to Wind data, as of the quarterly report of the year, Shandong Energy Group New Materials Co., Ltd. holds a certain percentage of Qixiang Group, thereby obtaining a certain percentage of Qixiang Tengda shares, achieving control).

Qixiang Group has completed the separation with Cedar.

On the date, after the Zibo Intermediate Court confirmed the completion of the reorganization plan of Qixiang Group, Li Xingming, the deputy chief judge of the Fourth Civil Division of the Zibo Intermediate People's Court, made the following statement:

No matter what the debt situation with Cedar is, it has nothing to do with us now; it's been severed. Through the restructuring process, we have addressed the debt crisis that spread to Shandong due to Cedar's guarantee by Qixiang. We have repaid what we could through the restructuring process, and from now on, we are completely cutting ties, ensuring the safety of our listed company.

The Zibo Intermediate Court has successfully completed a "breakthrough and chain-cutting" process by transitioning from execution to bankruptcy, making it a textbook case. Faced with complex debt circles and chains, the court introduced state-owned assets to resolve the situation and enhance the industry. Utilizing the swift approach of bankruptcy reorganization, the court separated the listed company Qixiang Tengda, ensuring its healthy development.

On [specific date], Qixiang Tengda announced that due to age reasons (age), Che Chengju, the founder of Qixiang Tengda, has applied to resign from his positions as the company's General Manager and non-independent director. After his resignation, Che Chengju will no longer hold any positions in the company or its subsidiary companies.

齐翔进入了一个新的时代。 值班编委：马琳
编辑：韩涧明审读：戴士潮