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Lentuo was declared bankrupt by a Court in China in July 2016 and they have been working on a reorganisation plan which has stalled as the company is refusing to cooperate and it is rumoured that Guo has been transferring assets out of the company...
http://money.163.com/16/1230/05/C9GS3Q5P0025814T.html#from=relevant
BTW Lentuo has about 1000 lease cars out with customers which it still actually owns but these are subject to claims and frozen by the banks. There are 5 court cases and 2 have been decided. In both cases there has been a ruling in favour of Lentuo to a value of over 6M USD on leasehold cars. Some or all of that would have to be paid to the banks, and the problem is getting their hands on the cars that are in the possession of customers. The 4S shops are still inactive I think. The maintenance branch is open.
Thanks. I agree, as normally the VIE structure makes it impossible to get at any underlying assets. Why do they care about keeping the company alive. BTW Guo has also been fighting but losing ongoing Chinese court cases against the banks about that parent company trust fund raiser where investors lost everything.
Thanks. I agree, as normally the VIE structure makes it impossible to get at any underlying assets. Why do they care about keeping the company alive. BTW Guo has also been fighting but losing ongoing Chinese court cases against the banks about that parent company trust fund raiser where investors lost everything.
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industry:
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description of job
Job Responsibilities:
Develop and implement
Group (Investment Development Department) Motor City Project Financing Director (Job Code: 001)
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Master more than 10 years of full-time
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description of job:
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I don't think so. The websites for the 4S shops don't work any more and they are all being individually sued by Banks in China. Guo is still fighting the cases though.
But it referred to LAS revenue paying of the debt, not any earnings that Guo got from the company. He was treating the LAS revenue as a source of paying of his debts as though they were LAS debts, and as if he was free to treat LAS revenue as his own.
I've seen similar arrangements in the context of money laundering, LAS being the "beneficial" as opposed to "legal" owner of those debts.
Why were we paying off someone else's debt? If I have a credit card bill and someone else is paying it off for me then, even if technically it is my debt, in practice it is their debt as it affects their net income.
LAS having to pay back those loans from its revenue made a bad cash flow situation even worse and and contributed to the inability to operate as a business. So of course shareholders should have known about it. Note how in the court cases about the debts in China, LAS is a party, so we are being treated as if they were our debts.
Bit of a dodgy claim to say have nothing to do with Lentuo when LAS was the only source of funds to pay of the loans.
I wouldn't be surprised if the lawyers didn't try very hard or even consented to this, given the state of the company, why would they want to expend much effort on the case?
At this stage I'm withdrawing that comment as I'm not sure that the translation was correct and I don't speak chinese. Some updates on blogs seemed to indicate some funding was or is being negotiated, but I'm not sure now. I let my wishful thinking get away from me but will monitor the chinese websites and let you know if anything more comprehensible is forthcoming.
Some updates and activities on the lentuo weibo blogs. But just hearsay at this stage.
Watch this space - there's some developments from China that lead me believe that we are out of the woods - don't expect anything to happen quickly, but looking extremely positive.
I checked with SEC tech staff and this filing was deleted by a post-acceptance deletion process on 9/16.
Great good to hear he is not still MIA
Links?
News from on the ground in China is still pretty dismal:
http://finance.sina.com.cn/chanjing/gsnews/20150925/090323348886.shtml
What is odd is that it does appear that there was a Notice of Effectiveness issued in relation to LAS with an accession number of 9999999995-15-002508.
However the link to it on the SEC site is not working:
http://www.sec.gov/Archives/edgar/data/1499673/999999999515002508/9999999995-15-002508-index.htm
It has been removed from the list of notices of effectiveness - there is a 9999999995-15-002507 and a 9999999995-15-002509, but 9999999995-15-002508 is missing. I can only assume that it was issued in error in relation to the old shelf offering registration from 2014.
Notices of effectiveness can be searched for or browsed here:
http://www.sec.gov/cgi-bin/browse-edgar?action=geteffect
You will see that there is no recent notice of effectiveness in relation to Lentuo
No it's just an acceptance of a share registration for a shelf offering made back in 2014. Funny it's for 300M and was never made public by press release!
What broker's allow trades in these grery market stocks? My interactive brokers account won't accept the trades in this stock.
The company had a lot of debt, and probably couldn't service it when China car market took massive downturn. One commentator in China says may survive as owns a lot of land.
Well there are signs that the dealers are starting to get back to operations, but Guo still owes a lot. But my main issue is that even if the dealers recover, will the investment vehicle that was LAS actually be worth anything? As LAS never actually owned anything - the parent company Electromechanical Group actually owns the dealerships and land etc. So yes it's a goner imho.
Updated again
Nice to see some more offers from Audi and VW
http://dealer.webcars.com.cn/Dealer/431/Default.html
http://dealer.webcars.com.cn/Dealer/317/Default.html
He lost, I wonder why Guo doesn't want that court to hear the case? Maybe just a delaying tactic.
This is about the Minmetals trust court case in China from June - nice to see that it is being defended by Guo who disputed the jurisdiction of the court to hear the case (but was unsuccessful):
http://caseshare.cn/full/127692084.html
The other court cases appear to be about bank loans to Lentuo and Guo, some of which appear to be loans made this year!
I'm monitoring the court sites for any bankruptcy of Guo and the other Chinese companies related to Lentuo such as Electromechanical Group.
Just cut and paste text into Google translate. It's a bank suing for 10's of millions. Not sure but it looks like they were default judgements too i.e.: not even defended by Guo. At least not about bankruptcy.
Some Chinese court documents
http://rmfygg.court.gov.cn/psca/lgnot/bulletin/download/3461367.pdf
http://rmfygg.court.gov.cn/psca/lgnot/bulletin/download/3767603.pdf
http://rmfygg.court.gov.cn/psca/lgnot/bulletin/download/3767507.pdf
http://rmfygg.court.gov.cn/psca/lgnot/bulletin/download/3767505.pdf
http://rmfygg.court.gov.cn/psca/lgnot/bulletin/download/3767504.pdf
http://rmfygg.court.gov.cn/psca/lgnot/bulletin/download/3767501.pdf
http://rmfygg.court.gov.cn/psca/lgnot/bulletin/download/3960573.pdf
26 jobs posted here (see list at right)
http://qc.djob.com/job_42EEFF688EAD1504.html
Real?
Sorry you are right, I misread the report.
Probably. CADA is saying that 90% of 4S shops will go broke in 2015. It could be a case of "last man standing" - if you are one of the ones that can stay afloat until the carnage is over then your business should be sustainable going into the future....
I'm not sure who's buying as there is no market maker... as for Mr Guo I would say that his assets and accounts are also frozen by the Chinese courts as he was the main guarantor under those trusts. Although I guess that wouldn't affect overseas bank and trading accounts if he has any. As you know, the assets of Lentuo (cars) are currently frozen by the courts.
This page has been amended to add more information for Riverstone http://company.zhaopin.com/CC000602670.htm
There also appears to be heaps of jobs here:
http://www.allzhaopin.com/gongsi/company799360.html
However, I'm not so sure that the allzhaopin site is as legit as the zhaopin site.
Mentions new car sales starting in Sept or October
http://www.eeo.com.cn/2015/0717/277930.shtml
Hope our Mazda dealers are getting in on the action
http://www.businessinsider.com/r-changing-chinese-habits-help-mazda-outstrip-rivals-in-slowing-market-2015-7?IR=T
Here is a translation of the one on the trusts:
http://tv.brtn.cn/20150712/VIDE1436678451991822_wap.shtml
Recent news video this time on problems for customers who leased cars. There is a translation :
http://tv.brtn.cn/20150712/VIDE1436681687546429_wap.shtml
This is about the two fund raising trusts. As you will be aware, Lentuo Electromechanical (“LE”), borrowed money through two trust agreements (Chinese investors) totalling RMB250 million (RMB150M + RMB100M) supposedly (if I recall correctly) to fund the construction of new 4S stores and a VW training centre.
There are web rumours in China that in fact the money was not used for this, but was embezzled or used to buy land instead.
The investors haven't been paid their interest (I don't know if they have also lost their capital but I suspect that this is what the report is saying - I don't understand the report, so I don't know what else it says.)
So yes it is definitely about Lentuo and it's financial problems... The TV report is more terrible publicity for the Lentuo brand, which must now be pretty much a liability.
In other (better) developments, the number of jobs has gone down to 6 now - this is s good sign, as it would be consistent with the jobs being removed from Zhoapin by someone as they were filled. Note that it looks like it is hard to find a GAAP reporting expert in China.
http://sou.zhaopin.com/jobs/companysearch.ashx?CompID=CC000602670