Yicheng iron and steel group of Jiuquan Iron and Steel Group officially declared bankruptcy!
Yicheng iron and Steel Co., Ltd., the former holding subsidiary of Gansu Jiuquan Iron and Steel Group Hongxing iron and Steel Co., Ltd., received the civil ruling from Yicheng County People’s Court of Shanxi Province.
Recently, Yicheng iron and Steel Co., Ltd. (Yicheng iron and Steel Co., Ltd.) of Gansu Jiugang group Hongxing iron and Steel Co., Ltd. (hereinafter referred to as “the company”) received the civil ruling of Yicheng County People’s Court of Shanxi Province (hereinafter referred to as “Yicheng County Court”), and now the relevant information is announced as follows:
1、 Overview of bankruptcy
Yigang company is the original holding subsidiary of the company, with a registered capital of RMB 500 million, and the original shareholding ratio of the company is 90%. Business scope: steel smelting, steel rolling processing and sales; production and marketing of steel billet, metal products, chemical products, oxygen, nitrogen, argon, crude benzene, ammonium sulfate, sulfur, coal tar, metallurgical coke, metallurgical furnace charge; gas transfer; accommodation; waste material recovery and sales; material storage; lifting and hoisting (items that must be approved according to law can be approved by relevant departments Carry out business activities). On April 25, 2018, the 11th meeting of the sixth board of directors of the company deliberated and passed the proposal on the application for bankruptcy of the holding subsidiary Yigang company, which agreed to enter the bankruptcy procedure (for details, please refer to the “about controlling shares” disclosed by the company on the website of Shanghai stock exchange and the designated legal media “China Securities Journal”, “Shanghai Securities News” and “Securities Times” on April 27, 2018 Announcement of the company’s application for bankruptcy (Announcement No.: 2018-017)); on April 26, 2018, Yicheng steel company submitted a bankruptcy application to Yicheng County People’s court after performing the deliberation procedures of its own shareholders’ meeting; on June 23, 2018, Yicheng County Court ruled in the civil ruling: to accept the bankruptcy liquidation application of Yigang company, and to appoint Shanxi zhongzhengping law firm to bear the responsibility Ren Yigang’s bankruptcy administrator (for details, please refer to the announcement on the acceptance of the bankruptcy application of the holding subsidiary by the court (Notice No.: 2018-022) disclosed on the website of Shanghai Stock Exchange and the designated legal media China Securities Journal, Shanghai Securities Journal and securities times on June 26, 2018.
2、 Main contents of the ruling
Since the bankruptcy liquidation application of Yicheng iron and steel company was accepted by Yicheng County Court, the bankruptcy administrator of Yicheng steel company has applied to Yicheng County Court to declare the bankruptcy of Yicheng iron and Steel Co., Ltd. after the bankruptcy administrator employed various professional intermediary agencies to audit and evaluate the company according to law, as well as according to the creditor’s verification results.
Yicheng County Court held that the company could not pay off its due debts, and its assets were not enough to pay off all the debts, and there was no relevant subject to apply for settlement or restructure the company, and the administrator’s application for declaring the company bankrupt was in line with the legal provisions. In accordance with the provisions of Article 2, paragraph 1 and article 107 of the enterprise bankruptcy law of the people’s Republic of China, Yicheng County Court ruled on February 25, 2020 that Yicheng iron and Steel Co., Ltd. of Jiuquan Iron and Steel Group Co., Ltd. was declared bankrupt, and the ruling will take effect from this day.
3、 Impact on the company
In the previous years, the company has made full provision for impairment of long-term equity investment and creditor’s rights of Yigang company, and since June 23, 2018, the company has no longer been included in the scope of the company’s consolidated financial statements. The declaration of bankruptcy has no impact on the company’s current profits and losses. The company will fulfill the obligation of continuous information disclosure in accordance with the law. Please pay attention to the investment risk of the majority of investors.
4、 Documents for reference
The people’s Court of Yicheng County, Shanxi Province issued a civil ruling (No. 3 of No. 1 of jin1022).
It is hereby announced
Board of directors of Gansu Jiugang Hongxing iron and Steel Co., Ltd
February 28, 2020
Related information
Founded in 1958, Jiuquan Iron and Steel Co., Ltd. is the fourth iron and steel complex planned and constructed by the state. It is also the earliest, largest and diversified modern enterprise group with both black and nonferrous metals in Northwest China. The iron making equipment of the company has four 450m3 blast furnaces, one 1000m3 blast furnace, one 1800m3 blast furnace and one 2500m3 blast furnace with an annual output of 7 million tons of molten iron; the steel-making equipment has three 60t converters, three 120t converters and one 100t electric furnace, with an annual output of crude steel of 8 million tons.
Yicheng production base of Shanxi Province: it has the annual production capacity of 1 million tons of pig iron, 2 million tons of converter steel and 2.2 million tons of hot-rolled ribbed steel bar, which is the largest production base of three-level rebar in the region.
Source: Zhuo steel observation