Opposition to Angang Bailout

Losses of 12.77 billion after auditing assets:
Reason bondholders meeting was held from April 19 Anshan Iron and Steel Group issued a capital verification announcement by the SASAC approval, the company will carry out audit of the assets, which will bring the loss of 12.177 billion yuan.

...According to China Merchants Securities statistics, in 2016 major losses and capital verification body a total of seven. Where 6 is the central level, in addition to a local state-owned enterprises. Capital verification and more to deepen the reform to reduce the burden for the purpose. Anshan Iron and Steel Group to greater losses and Panzhihua Iron and Steel Group, Anshan Iron and Steel Group, a subsidiary are, respectively, loss of 7.476 billion yuan and 4.701 billion yuan.

Anshan Iron and Steel Group, said: "To deepen the reform of enterprises, promote industrial upgrading, reduce the burden on enterprises, evaluation of state-owned equity, Anshan Iron and Steel Group December 31, 2014 as the base date, to carry out capital verification work, and on April 15, 2016 close the SASAC, the company special corporate capital verification sub-25, expected loss of assets 12,177,315,000 yuan, transferred to the appropriate asset impairment account, subtract the net assets 12,177,315,000 yuan. "
A vote by bondholders failed to reach 75% approval:
Holders meeting announcement shows that the proposal of capital verification and maintain the bond subsisting obtained 4 '16 Angang set CP001 "holders and agents in favor, 70% of the total voting power, 75% approval not achieved, and therefore not agreed. In favor of another claim on the issuer undertakes not to carry out debt, not the default, ensure STRIPS holders and agents to deal with the motion, there are five, 85% of the total voting rights.
ANgang is not in as bad shape as some other steel debtors:
According to China Merchants Securities research report, the loss ratio of net assets and capital verification in Angang accounting reference date is about 13.81%, compared other subjects a comparatively small effect. Like Inner Mongolia North Heavy Industries Group will lose $ 2.9 billion has been seriously insolvent; State Power Investment Group Co., Ltd. Jinyuan will lose 4.98 billion yuan, accounting for net assets ratio exceeds 80%.

China Merchants Securities believes that the capital verification theoretically does not affect the actual operation of enterprises. On the financial statements, it will be offset against the pre-owner's equity, reducing the balance sheet assets, equity, debt ratio change; no effect on the income statement and cash flow statement, but will help increase future profits.
How is Angang doing operationally?
How steel giant status? Industry downturn, iron ore prices fell sharply in 2015, Anshan Iron and Steel Group's total profit -10.7 billion, the loss amounted to more than 10% of the Group's net assets. As of March 2016, the company accumulated a net profit of -2.3 billion. Angang's listed company Panzhihua Steel Vanadium Titanium is also due to two consecutive years of losses was put "ST" hat.
Caixin: 鞍钢清产核资损失百亿 维持债券存续议案被否

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