Bidding Window Set for Haosen Packaging (Fujian) Distressed Debt at RMB 103 Million Opening Bid

China Great Wall Asset Management Co., Ltd. Fujian Branch (hereafter Great Wall Fujian Branch) has issued a notice covering the non-performing debt assets of Haosen Packaging (Fujian) Co., Ltd. that it holds, with open bidding to run from 10:00 on May 31, 2021 until 10:00 on June 1, 2021 (extensions excepted).

The notice states that the claim originated with the Fujian Branch of China Construction Bank Corporation before being transferred to China Great Wall Asset Management Co., Ltd. Fujian Branch (hereafter Great Wall Company). As of December 20, 2020, the principal stood at RMB 177.8389 million and interest plus penalty interest at RMB 64.7836 million, bringing the total claim to RMB 242.6225 million. Security is provided through a combination of mortgage and suretyship.

1. Borrower profile

Haosen Packaging (Fujian) Co., Ltd. was incorporated on May 20, 2011 as a limited liability company with registered capital of RMB 300 million HKD and Lin Mou-xing serving as legal representative. Its plant is located within the China Packaging and Printing Industry (Jinjiang) Base, where it produced color-printed packaging cartons, paper bags, gold and silver cardboard and other packaging and decoration products. The company has ceased operations. It is affiliated with Fujian Jinjiang Daziran Color Printing Co., Ltd., with both businesses sharing the same actual controller, Lin Mou-wang.

1. Loan details

As of December 20, 2020, the outstanding financing balance under this project was RMB 242,622,491.01, comprising RMB 177,838,872.20 in principal and RMB 64,783,618.81 in unpaid interest.

1. Security arrangements

(1) Collateral

① The first mortgage covers Plant No. 1 and its land at No. 28 Dagongshan Road, China Packaging and Printing Industry (Jinjiang) Base, Cizao Town, Jinjiang City, registered under Haosen Packaging's name, with a maximum mortgage amount set at RMB 99.609 million. Land area: 23,483 sq m, land certificate Jin Guo Yong (2015) No. 00693, land other-rights certificate Jin Ta Xiang (2015) No. 00476; building area: 67,871.69 sq m, property ownership certificate Jin Fang Quan Zheng Cizao Zi No. 201506498, property other-rights certificate Jin Fang Ta 2015 Zi No. 3065.

② The second mortgage covers Plant No. 2 and its land at No. 28 Dagongshan Road within the same base, also held in Haosen Packaging's name, with a maximum mortgage amount set at RMB 42.255 million. Land area: 25,612 sq m, land certificate Jin Guo Yong (2015) No. 00694, land other-rights certificate Jin Ta Xiang (2015) No. 00475; building area: 21,729.08 sq m, property ownership certificate Jin Fang Quan Zheng Cizao Zi No. 201506501, property other-rights certificate Jin Fang Ta 2015 Zi No. 3064.

(2) Guarantor

The guarantor, Fujian Jinjiang Daziran Color Printing Co., Ltd., was established on August 18, 1995 as a limited liability company with registered capital of RMB 40 million and Lin Mou-xin as legal representative. Its plant in Chendai Gounxi Industrial Zone, Jinjiang City, produced color-printed packaging cartons, paper bags, color-printed fine corrugated cartons (boxes) and eco-friendly bags, with color boxes as its core product. The company has likewise stopped operating, and its actual controller is also Lin Mou-wang. It entered into a maximum-amount suretyship contract with a guarantee limit of RMB 109 million.

1. Litigation status

Jinjiang CCB, the original creditor bank on this account, filed a lawsuit and the two sides reached a mediation agreement. Haosen Packaging (Fujian) Co., Ltd., however, failed to honor the terms set out in the mediation document, and the bank has since applied for compulsory enforcement.

Prospective buyers are urged to gain a thorough understanding of the asset, as any materials or information supplied by Great Wall Fujian Branch are for reference only. Consultations and site inspections are available from the date of the notice through May 30, 2021; interested parties may call the consultation line or visit the Great Wall Fujian Branch office in person to speak with Mr. Zheng.

1. Bidding target

The target is the non-performing debt assets of Haosen Packaging (Fujian) Co., Ltd. The opening bid is RMB 103 million, the deposit is RMB 5.15 million, and the minimum bid increment is RMB 50,000.

1. Bidder eligibility

The following parties may not purchase these assets, whether directly or in a disguised form: civil servants, staff of financial regulatory institutions, political and legal police officers, employees of asset management companies, management of state-owned enterprise debtors, and related parties such as lawyers, accountants and appraisers involved in asset disposal work, as well as non-financial institution legal persons in which any of those related parties participate; individuals with immediate family ties to staff of the asset management company engaged in the non-performing debt transfer, to the state-owned enterprise debtor, or to persons in charge of the entrusted asset appraisal institution; and dishonest judgment debtors together with their legal representatives, principal officers, or any person directly responsible for affecting debt performance. Beyond these exclusions, any natural person, legal person or other organization with full civil capacity is eligible to bid, provided it has sufficient financial strength and a sound social reputation.

Contact: Mr. Zheng

Tel: 0591-87623710

Fax: 0591-87612933

Address: No. 153 Hudong Road, Fuzhou City

Postcode: 350003

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-377411.html