Turbulent Huiyuan Juice: Executive resignations, debt defaul
Huiyuan Juice, a well-known juice brand, has been in turmoil recently, with not only the departure of company executives, but also the news of a debt default.
In addition, Huiyuan juice suspension has been suspended for nine months, and the resumption of trading seems to be far away, triggering various speculations about Huiyuan juice is about to exit the market.
6 executives resign in 22 days On the evening of February 3, Huiyuan Juice announced that the company's non-executive director Yan Yan and Chief Executive Officer Wu Xiaopeng had recently resigned from their posts.
Wu Xiaopeng has left Huiyuan Juice and is no longer in his post, the Beijing News reported. It is worth noting that Wu Xiaopeng has been the chief executive officer of Huiyuan Juice for just over half a year. On July 16, 2018, Huiyuan Juice announced that it had appointed Wu Xiaopeng as Chief Executive Officer, effective July 16, 2018, and that Wu Xiaopeng would be responsible for the overall management and day-to-day operation of Huiyuan Juice.
Wu Xiaopeng, then 40, joined Huiyuan in June 2018 after serving as co-president of Suzhou Gold Mantis Enterprise Group Co., Ltd. Since 13 January 2019, six senior executives have left Huiyuan Juice, which does not meet the minimum number of nominations and remuneration committees set out in the terms of reference of the Company's Nomination and Compensation Committee.
Huiyuan Juice said it was looking for suitable candidates to fill the vacancy and chief executive of the Nomination and Remuneration Committee as soon as possible.
Once again, into the debt crisis. According to financial network reported that the already heavily indebted Huiyuan, once again caught in the debt storm. On 25 January, Huiyuan Juice's Board of Directors announced that the Company had recently received a redemption notice from bondholders requiring the Company to redeem all convertible bonds on or before January 24, 2019 at a redemption amount of 120% (i.e., HK$1.2 billion) of the convertible bond.
Under the terms of the convertible bond, the Company is also required to redeem the convertible bond at the maturity date of 23 January 2019 at the current amount of 102% (i.e., HK$1.02 billion). However, according to the latest relevant information released by Glundhui on January 29, Huiyuan Juice announced that it was still evaluating the redemption notice and the full impact of any default related to the amount of redemption of the outstanding convertible bonds and the amount of redemption slated.
In other words, the Company has not currently paid the redemption amount or maturity amount to the bondholders, which means that Huiyuan Juice's HK$1.02 billion was not paid on time, in breach of the loan agreement.
Suspected risk of de-listing Huiyuan Juice issued a suspension announcement on April 3, 2018, suspending the company's shares and bond trading, and the 2017 annual report, which was scheduled for March 29, was also postponed, according to the report.
As of January 30, 2019, Huiyuan Juice's 2017 Annual Report and 2018 Semi-Annual Report have not been released, and the Company's shares have not been re-listed.
According to Huiyuan Juice's previous announcement, as early as June 4, 2018, the HKEx has sent a letter to Huiyuan Juice and listed the conditions for re-licensing, including forensic investigation of the relevant loans, publication of the results of the investigation and taking appropriate remedial action;
On the evening of November 6, 2018, Huiyuan Juice issued an update on the implementation of the re-licensing conditions, stating that, as of the announcement date, the relevant independent investigation and independent internal monitoring and inspection are still in progress and will continue to be implemented, and that the Company's 2017 annual report and 2018 semi-annual report will take more time to complete. It should be noted that according to Huiyuan Juice's previous announcement, if the Company fails to complete the re-licensing conditions listed by HKEx by the end of January 2020, the HKEx will commence the process of delisting the company." In other words, Huiyuan juice is likely to be delisted from the Hong Kong Stock Exchange as a result.