Gelonghui September 26?06189.HK issued an announcement that due to the default of the bank debt, the company was in financial difficulties, lacked the ability to pay off its maturing debts and was insolvent, the company submitted a bankruptcy reorganization application to the Shenzhen Intermediate people's Court (the "court") on September 25, 2023.
The board of directors believes that the company has many high-quality assets, enjoys high brand value in the industry, holds high-level complete qualifications and licenses in China's construction industry, and has restructuring value. If the bankruptcy reorganization application is approved by the court, it will have the opportunity to reduce the company's debt, reduce the company's financial costs, improve the company's operation, and gain a new life.
The company will fulfill the legal obligations of the debtor in accordance with the law, actively reach a solution to the debt problem with all parties on the premise of equal protection of the legitimate interests of all parties, and strive to form a draft restructuring plan at an early date and submit it to creditors for consideration and approval by the court. As of the date of this announcement, there is still great uncertainty as to whether the bankruptcy reorganization application can be accepted by the court and whether the company will enter the reorganization procedure. Trading in the shares of the Company has been suspended on the Stock Exchange since 9: 00 a.m. on April 1, 2022 and will continue to be suspended until further notice.