Dehehantong helped state-owned financial asset management companies complete market-oriented debt-to-equity swap projects

Recently, a state-owned financial assets management company (AMC) cooperated with a listed company to improve the debt structure of the listed company's subsidiaries through market-based debt-to-equity swaps, with an investment scale of 300 million yuan. AMC's funds will be used to repay its foreign financial liabilities. In the future, AMC's investment withdrawal will be realized through the private placement or issuance of shares by the listed company and the purchase of assets through convertible bonds.

Dehehantong was commissioned by the client to act as the client's due diligence and transaction counsel. Mr. Qiu Wenyu, director of the Management Committee of Dehehantong Shanghai Office and Director of Dehehantong Shanghai Non-performing Assets and Restructuring Business Committee, led the team to provide full legal services for the project.

Electromagnetic wire is an important basic material of modern industry such as automotive motors, power tools, industrial motors, household appliances and other products, known as the "heart" of motor and electrical industrial products, which is of great significance to the development of the national economy. The company started early in the field, large scale, leading technology, production and sales are the top five in the domestic industry, but subject to the electromagnetic wire industry itself low gross profit margin, long investment return cycle characteristics, coupled with the company in recent years to introduce high-quality customers generally long account period, a large number of operating funds, comprehensive reasons, As a result, the target company maintains the operating status of high debt and low turnover for a long time.

AMC actively implements the policy spirit of the China Banking and Insurance Regulatory Commission's "Guiding Opinions on Promoting High-quality Development of the Banking and Insurance Industry". By implementing market-oriented debt-to-equity swaps for the target companies, AMC is expected to effectively alleviate the operating difficulties of the target companies, reduce the debt ratio, comprehensively help them improve quality and efficiency, and serve the local economic development. After the implementation of the plan, the capital increase will be used to repay the external financial liabilities of the target company in the consolidated statement, significantly improve the company's asset operation level, improve its financial position, help it to smoothly overcome the phased crisis, and lay a solid foundation for the subsequent inbound M&A of the industrial chain.

The successful completion of the market-oriented debt-to-equity swap project demonstrated Dehehantong's professional strength in the field of non-performing assets and further consolidated its leading position in the legal services industry. In the future, Dehehantong will continue to uphold the service concept of "diligence, ingenuity and perfection", deeply understand the needs and expectations of customers, achieve their own sustainable development, and contribute to promoting the construction of the legal service industry.